S&P 500 Seen Falling 10% as Fed Hike Odds Near 100%
Updated
Updated · Bloomberg · Sep 15
S&P 500 Seen Falling 10% as Fed Hike Odds Near 100%
2 articles · Updated · Bloomberg · Sep 15
Summary
A 10% S&P 500 correction could follow potential Federal Reserve rate hikes starting this week, Macro Risk Advisors said, warning that tighter policy would squeeze corporate margins and weaken profit expectations.
A quarter-point move by Fed Chair Kevin Warsh on Wednesday is now almost fully priced in, up from about 60% odds a week ago as traders react to recent inflation data.
The index has already slipped nearly 1% in September, historically its weakest month, with elevated energy costs adding to pressure on equities.
US 10-year Treasury yields have climbed above 5% for the first time since 2023, underscoring how expectations for a tightening cycle are rippling across markets.