Stock Market Investors Just Got Bad News From the Federal Reserve. History Says This Will Happen Next.
The Federal Reserve just raised interest rates for the first time in more than three years.
Overview
The U.S. stock market is having a decent year despite economic uncertainty created by the Iran conflict. The broad-based S&P 500 (SNPINDEX:^GSPC) has advanced 11%, the technology-heavy Nasdaq Composite (NASDAQINDEX:^IXIC) has added 14%, and the blue chip Dow Jones Industrial Average (DJINDICES:^DJI) has added 7%.
However, investors got bad news from the Federal Reserve last week. Policymakers raised interest rates for the first time in more than three years. Historically, new rate-hike cycles have often coincided with stock market corrections. Read on to learn more.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.