The Federal Reserve's interest rate hiking cycle may be nearing its end amid signs of receding inflation.
Broad-based market rallies followed the conclusions of the past four rate hiking cycles.
Source: Morningstar and S&P. Average returns 12 months following the end of each of the past four Fed rate hike cycles (end dates used: 2/1/1995, 5/16/2000, 6/29/2006, 12/20/2018). S&P 500 Index (U.S. Equity), MSCI All Country World Index (Global Equity), MSCI Emerging Markets Index (EM Equity), Russell Mid Cap Index (Mid Cap), Russell 1000 Index (Large Cap), Russell 2000 Index (Small Cap), JP Morgan EMBI Global Diversified Index (EM Bond), Bloomberg U.S. Aggregate Bond Index (U.S. Bond), Bloomberg Global Aggregate Bond Index (Global Bond), Bloomberg U.S. Credit Index (IG Corp), Bloomberg High Yield Corporate Index (High Yield), Bloomberg U.S. Treasury Index (U.S. Treasury).
Past performance does not guarantee future results.
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A SECULAR GROWTH REVIVIAL
READY FOR A PAUSE
RECESSION RISK AMID BANKING CRISIS
AVERAGE RETURNS 12 MONTHS AFTER PAST FOUR RATE HIKE CYCLES ENDED
Data illustrating current market conditions and trends—and what they mean for investors
CHART HIGHLIGHTS
Region
Size
Region
Quality
Equity
Fixed Income
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Spotlight on the markets
CHART. shows the average returns 12 months after past four rate hike cycles ended.
EQUITY: Columns 1 to 6 of 12
Region.U.S. Equity 20% Return
Region. Global Equity 16% Return
Region. EM Equity 14% Return
Size. Mid Cap 23% Return
Size. Large Cap 20% Return
Size. Small Cap 19% Return
FIXED INCOME: Columns 7 to 12 of 12
Region. EM Bond 22% Return
Region. U.S. Bond 12% Return
Region. Global Bond 9% Return
Quality. IG Corp 14% Return
Quality. High Yield 12% Return
Quality. U.S. Treasury 10% Return