Fed Rate Hikes Historically Weigh on US Stocks

History shows the S&P 500 typically falls about 2.6% in the three months after the Fed's first rate hike, with drawdowns of 8-14% in most cycles since 1994. The index usually recovers within a year, gaining a median 6.8%. Analysts expect the current cycle to be shorter and shallower than 2022's aggressive tightening.