S&P 500 Performance After The FOMC Raises Interest Rates By 25 Bps Since 1990

Multiplo Invest 3.46K Followers Follow Summary I remain optimistic about the U.S. stock market, maintaining an 8,000 S&P 500 year-end target despite rising rate risks. Historical data shows the S&P 500 typically rebounds 6–12 months after Fed rate hikes, with 12.5% average gains after 25 bps increases. The S&P 500's current 0.79 PEG ratio is at a 30-year low, signaling attractive valuation relative to earnings growth. Earnings growth remains the primary market catalyst, with Q3 S&P 500 EPS expected to rise 28.5% YoY. Getty Images Investment Thesis I'm keeping optimistic about the U.S. stock market. This article is part of my macroeconomic weekly series started in 2024. Some readers have asked my opinion about the impact of rising interest rates on the stock market, and my answer This article was written by Multiplo Invest 3.46K Followers Follow More than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions. Analyst’s Disclosure: I/we have a beneficial long position in the shares of VOO, SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.