The Federal Reserve Just Raised Interest Rates for the First Time Since 2023. Here's What History Says Happens in the Stock Market Next.

Federal Reserve Chairman Kevin Warsh raised the federal funds rate by a quarter point in his third FOMC meeting, marking the first rate hike since 2023. Historically, rate-hiking cycles trigger an average 14% drawdown in the S&P 500 within 12 months, though the decline may not occur immediately and recovery typically follows as markets digest the effects on corporate earnings and inflation.