Fed Rate Hike Imminent: Will US Equities Mirror 2022 or 1997?

According to a report by Investopedia, US stocks often face initial volatility following the start of a Federal Reserve tightening cycle. Data from LPL Financial analyzing six tightening cycles since 1994 indicates that while short-term performance for the S&P 500 is typically weak, outcomes one year later vary significantly based on economic growth. If the economy avoids recession, the bull market may persist, as seen in the 42% gain in the S&P 500 following the March 1997 rate hike.