Published: December 2015
Historically, when the Federal Reserve (FED) has hiked interest rates, the S&P 500 performed quite well over the tightening cycle?
The charts below illustrate this point by showing the last three FED rate hikes.
Returns and Yield Changes During Rate Hiking Cycles:
S&P 500 Price Index and 10-Year US Treasury Yield Over the Last Three Rate Hiking Cycles
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management.
Guide to the Markets – U.S. Data are as of September 30, 2015
Past performance does not guarantee future results. The S&P 500 (Standard & Poors Stock Index) is a stock market index containing the stocks of 500 American corporations with large market capitalization that are considered to be widely held. The S&P 500 is unmanaged and cannot be invested in directly.