Will the Nasdaq Fall After the First Interest Rate Hike in 3 Years? History Offers a Strikingly Clear Answer.
Nasdaq companies may be particularly sensitive to interest rate levels.
Overview
Less than a year ago, the Federal Reserve continued along a path that began in 2024. The central bank was in the middle of a series of interest rate cuts, something that is generally seen as supportive of consumers and companies -- particularly growth players such as those in the field of technology. But in recent months, as inflation rose, the central bank halted that trend, and it became clear that a policy shift was on the way.
That shift happened last week when Fed chair Kevin Warsh increased interest rates by a quarter point, marking the first such move in three years. Now you may be wondering if the tech-heavy Nasdaq Composite will drop in the months to come. History offers an answer that's strikingly clear.
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Originally published at www.fool.com.