A Fed Rate Hike Won’t Kill a Bull Market, According to History

Historical data indicates that Federal Reserve rate hikes do not typically end bull markets, as similar actions over the last three decades failed to create significant long-term headwinds for S&P 500 returns. However, history suggests a different outcome for bond yields. When the Federal Reserve increases interest rates specifically to curb the rapid rise of longer-term yields, such efforts have generally proven unsuccessful in achieving that specific objective according to past market trends.