What history says about how stocks will react to the Fed's long-awaited rate hike

Business Insider | 15-09-2026 06:44pm |

Markets are pricing in a 92.7% chance of a rate hike at the Federal Reserve's upcoming meeting. According to Goldman Sachs analysis, the S&P 500 typically dips immediately after a rate hike but then rebounds, often bottoming two to three months after the initial increase. With inflation at 3.4% and long-term Treasury yields spiking, investors anticipate a hike, though questions remain about how Fed officials might signal future moves, especially given Chair Kevin Warsh's aversion to forward guidance.

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