How long does it take the Stock Market to recover from a rate hike
La agenda no da tregua, y tras la subida de tipos de ayer del BCE los focos se desplazan hacia la reunión del miércoles de la Fed. Leer
The European Central Bank's recent interest rate hike has investors focused on the US Federal Reserve's meeting on Wednesday. Historically, a Fed rate hike has had a negative impact on the stock market in the short term, but UniCredit analysts say that over a medium-term horizon, the market tends to perform well. According to UniCredit's data since 1988, in five out of seven episodes of a Fed rate hike after a pause, the S&P 500 was higher six months later.
One year after a rate hike, the stock market has typically generated an average return of around 8%. UniCredit advises investors not to confuse short-term volatility with a deterioration in medium-term prospects, assuming the Fed's rate hike cycle aligns with current expectations and economic growth remains solid.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
