“Stock markets usually react negative to rate increase news because it means less corporate profits, because cost of borrowing will higher. Also keep in mind even though this principle is the same at the beginning of a rate hike cycle (like now) stocks may take it much harder than at the end of a rate hike cycle when it is over a period of time priced in and expected. Later on the dynamic change a bit and stocks might actually go up on rate hike news because business is good.” (DrFX Daily Briefing April 29)
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