Stocks after the first Fed hike of a cycle: small dip, big uncertainty
SPY•Markets rally as yields and dollar ease
Main U.S. indexes rally; Nasdaq up ~1.6%, S&P 500 up >1%
Tech leads S&P 500 sector gainers, staples is weakest
Dollar edges down; U.S. crude pares losses, now off ~0.4%; bitcoin rises; gold up >2%
U.S. 10-year Treasury yield falls to ~4.94%
What the first Fed hike may mean for stocks
What effect is the Fed's freshly launched interest rate cycle likely to have on the U.S. stock market?
Perhaps some weakness over the next two months, but with a highly variable outcome 12 months down the road, limited data suggests.
Higher interest rates are generally bad news for stocks, as safe-bet Treasuries become relatively more attractive compared to riskier stocks, and as higher interest rates make it more costly for companies to borrow and operate their businesses.
