Here’s How Stocks Performed After The Fed Stopped Hiking Rates In The Past

  • 📰 Forbes
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 53%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

The S&P 500 could be in line for massive gains if the Fed’s tightening campaign is in fact over, though one strategist says “a Fed pause may awaken the bear.”

The S&P 500 has already rallied to a 14-month high, thanks in part to Wall Street’s optimism about the Federal Reserve pumping the brakes on its monetary tightening campaign—and history suggests the index could surge considerably more should the central bank officially put an end to hikes Wednesday.Xinhua News Agency via Getty ImagesThe S&P 500 gained 16.

Even if the Fed reverses course, the data supports bullish investors’ sentiments: The S&P gained 18.9% on average in the 12-month period following the first pause in the four tightening cycles since 1990. The S&P gained 46.2% three years after the conclusion of its prior six hiking cycles, also outperforming historical returns.The Fed began the current tightening campaign last March, breaking out the strongest mechanism in its tool kit to fight inflation, which hit a 41-year high last summer.

4% last month on an annual basis, its lowest level in more than two years, but still far higher than the central bank’s 2% target.The S&P is up 15% year-to-date and more than 25% since last fall. The index now trades at a roughly 25 P/E ratio, a valuation metric that compares share prices to projected future earnings and historically sits at about 16.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in İE
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed rate pause: These 5 charts capture 15 months of market chaosThese 5 charts capture a rollercoaster 15 months for stocks, bonds, and crypto as the Fed pauses its tightening campaign
Source: BusinessInsider - 🏆 729. / 51 Read more »