Why Rate Hikes Might Not Crash the Market in 2026
Interest rates are rising, but that might be a blessing in disguise for the stock market.
Overview
When the Fed raises interest rates, it can slow inflation and economic growth, and also weigh down the stock market. The Fed raised interest rates last week, the first time it's done so since 2023. But when it actually began raising rates in the previous year to slow down inflation, the results were devastating: the S&P 500 (SNPINDEX:^GSPC) fell by more than 19%.
This time around, an increase in interest rates might not end up crashing the stock market. Instead, it might give investors added confidence.
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Details
Source
Originally published at www.fool.com.
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