{"id":22535,"date":"2023-06-14T11:33:04","date_gmt":"2023-06-14T15:33:04","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/heres-how-stocks-performed-after-the-fed-stopped-hiking-rates-in-the-past\/"},"modified":"2023-06-14T11:33:05","modified_gmt":"2023-06-14T15:33:05","slug":"heres-how-stocks-performed-after-the-fed-stopped-hiking-rates-in-the-past","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=22535","title":{"rendered":"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past"},"content":{"rendered":"
\n

Topline<\/h2>\n

The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its monetary tightening campaign\u2014and history suggests the index could surge considerably more should the central bank officially put an end to hikes Wednesday.<\/p>\n

Key Facts<\/h2>\n
\n
\n

The S&P 500 gained 16.8% on average in the 12 months following the prior six conclusions to Fed tightening cycles\u2014far outperforming the index\u2019s historic 12% annual return, according to FactSet data analyzed by Forbes<\/em>.<\/p>\n<\/p><\/div>\n

\n

A 16.8% increase would propel the S&P from about 4,380 points to above 5,100, shattering the index\u2019s all-time peak of 4,793 achieved in December 2021.<\/p>\n<\/p><\/div>\n

\n

Investors widely expect the Fed to keep the federal funds rate flat at 5% to 5.25% at the conclusion of its policy meeting Wednesday afternoon, though there remains a strong possibility that the Fed will raise rates again at some point before bringing rates off of their 17-year highs.<\/p>\n<\/p><\/div>\n

\n

Even if the Fed reverses course, the data supports bullish investors\u2019 sentiments: The S&P gained 18.9% on average in the 12-month period following the first, but not necessarily the last, pause in the four tightening cycles since 1990.<\/p>\n

<\/fbs-ad>\n <\/div>\n

\n

The S&P gained 46.2% three years after the conclusion of its prior six hiking cycles, also outperforming historical returns.<\/p>\n<\/p><\/div>\n<\/div>\n

Key Background<\/h2>\n

The Fed began the current tightening campaign last March, breaking out the strongest mechanism in its toolkit to fight inflation, which hit a 41-year high last summer. After several months of limited progress, consumer prices considerably came down recently, with inflation hitting 4% last month on an annual basis, its lowest level in more than two years, but still far higher than the central bank\u2019s 2% target.<\/p>\n

Contra<\/h2>\n

The S&P is up 15% year-to-date and more than 25% since last fall. The index now trades at a roughly 25 price-to-earnings ratio, a valuation metric which compares share prices to projected future earnings and historically sits at about 16. This valuation is far too rich for many experts\u2019 tastes, including Morgan Stanley\u2019s top strategist Michael Wilson, who wrote Monday he believes \u201ca Fed pause may awaken the bear tactically\u201d as the market properly prices in what lower inflation truly means for corporations: A weakened consumer. Morgan Stanley projects the S&P will sit at 4,200 this time next year, declining 4%.<\/p>\n

Big Number<\/h2>\n

22.5%. That\u2019s how much the S&P gained in the 12-month stretch immediately following prior tightening campaigns, excluding the dot-com stock bubble which burst at the turn of the millennium. Such a rally would send the S&P to nearly 5,400, a dramatic 54% rise from its 2022 trough of 3,492.<\/p>\n

<\/h2>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its monetary tightening campaign\u2014and history suggests the index could surge considerably more should the central bank officially put an end to hikes Wednesday. Key Facts The S&P 500 gained 16.8% […]<\/p>\n","protected":false},"author":1,"featured_media":22536,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-22535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"\nHere\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=22535\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=22535\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-14T15:33:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-14T15:33:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/06\/1686756784_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"674\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=22535#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=22535\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past\",\"datePublished\":\"2023-06-14T15:33:04+00:00\",\"dateModified\":\"2023-06-14T15:33:05+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=22535\"},\"wordCount\":454,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=22535#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=22535\",\"url\":\"https:\/\/ifintechworld.com\/?p=22535\",\"name\":\"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-06-14T15:33:04+00:00\",\"dateModified\":\"2023-06-14T15:33:05+00:00\",\"description\":\"Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=22535#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=22535\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=22535#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past | iFintechWorld","description":"Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=22535","og_locale":"en_US","og_type":"article","og_title":"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past | iFintechWorld","og_description":"Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its","og_url":"https:\/\/ifintechworld.com\/?p=22535","og_site_name":"iFintechWorld","article_published_time":"2023-06-14T15:33:04+00:00","article_modified_time":"2023-06-14T15:33:05+00:00","og_image":[{"width":1200,"height":674,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/06\/1686756784_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=22535#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=22535"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past","datePublished":"2023-06-14T15:33:04+00:00","dateModified":"2023-06-14T15:33:05+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=22535"},"wordCount":454,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=22535#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=22535","url":"https:\/\/ifintechworld.com\/?p=22535","name":"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-06-14T15:33:04+00:00","dateModified":"2023-06-14T15:33:05+00:00","description":"Topline The S&P 500 has already rallied to a 14-month thanks in part to Wall Street\u2019s optimism about the Federal Reserve pumping the brakes on its","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=22535#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=22535"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=22535#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Here\u2019s How Stocks Performed After The Fed Stopped Hiking Rates In The Past"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/22535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22535"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/22535\/revisions"}],"predecessor-version":[{"id":22537,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/22535\/revisions\/22537"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/22536"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}