What would 25 bps Fed hike mean for stock Market?
I’m expecting a 25 bps Fed rate hike in December. What could that mean for stocks?
The Fed announces its decision on December 9 at 2 PM ET. A 25 bps hike would raise the policy rate by 0.25 percentage points, which could pressure richly valued growth stocks and companies that need to refinance debt soon.
If investors have already priced in a hike, the reaction could be muted. Stocks could even rally if the Fed signals a pause. If the hike catches investors off guard or the Fed signals more increases in 2027, stocks could come under more pressure.
I’ll be watching the Fed’s 2027 rate projections and what Chair Kevin Warsh says about inflation.
What’s your call for December: a hike or a hold?
