UBS: No Need to Overreact to Fed Rate Hikes — History Shows US Stocks Always Ride It Out

Odaily News: At dawn Beijing time on Thursday, the Federal Reserve is set to announce its interest rate decision, drawing intense global market attention. On Tuesday US Eastern Time, UBS analysts said there is no need for excessive panic over the anticipated rate hike, as historical data shows that after a rate hike cycle officially begins, the stock market tends to demonstrate strong resilience. UBS maintained its S&P 500 targets unchanged: 8,100 by year-end and 8,400 by mid-2027.

A UBS strategy team led by David Lefkowitz reviewed 16 Fed rate hike cycles since 1954: the S&P 500 posted an average gain of 10.8% in the 12 months following the first rate hike. They also reached a key historical conclusion: in the year after a rate hike cycle begins, the US stock market has never entered a bear market.