The case for a 'bullish shock' to stocks if the Fed hikes rates

Some analysts are suggesting that a Federal Reserve rate hike could potentially lead to a surge in stocks, contrary to the typical expectation that higher rates pressure equities. According to Citi, if a hike calms bond yields, it could result in a 'bullish shock' for stocks. The odds of a 25 basis point hike have climbed to 92% in recent days, which would mark the first increase in interest rates by the central bank in this cycle. Investors are not clamoring for a hike, but the backdrop may be different this time.

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