B · Normal
[Agency: The Federal Reserve’s interest rate hikes may cause the S&P 500 to fall 10%] September 15th, according to analysis by Macro Risk Advisors LLC, the Federal Reserve’s interest rate hikes that may start this week may trigger a correction in the S&P 500 Index. The narrowing of corporate profit margins will impact profitability prospects, and the market is also preparing for a new tightening cycle. "We expect an 8%-10% correction in the S&P 500, with a possible second wave of losses in December," he wrote in a note to clients on Monday. Raising interest rates will "squeeze the profit margins of companies that cannot pass costs on to consumers" while also impacting markets that are currently not fully prepared for volatility.
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