S&P 500 Around First Fed Rate Hikes vs. Speed of Hikes

In fast tightening cycles, the S&P 500 typically struggles in the 12 months post-first hike; in slow or no cycles, it tends to rally. Near term, stocks stay shaky until investors believe in a “slow-hike” or “one-and-done” Fed.

Image: Ned Davis Research

S&P 500 Around First Fed Rate Hikes vs. Speed of Hikes