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What Will Stocks Do If the Fed Raises Rates?
Stocks have in recent decades tended to rise in the year after the start of a rate-hike cycle.Credit: Spencer Platt / Getty ImagesKey TakeawaysThe Federal Reserve is widely expected to raise interest rates next week for the first time since July 2023.Historically, stocks often decline in the months following a rate hike but tend to recover over time.Traders widely expect an interest-rate hike—the first in more than three years—from the Federal Reserve when it meets next week. What’s next for stocks if that happens? If history is any guide, which is hardly guaranteed, they may lose steam…
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