Rate Hikes Don't Always Mean Market Downturn

The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% on September 16, sparking concerns about the impact on U.S. stocks.

However, just days later, the Nasdaq Composite Index hit a new all-time high of 0.45% on September 22, with a year-to-date gain of 17.22%, according to Opening Bell Daily.

Historically, investors have been conditioned to believe that rate hikes and record highs are bearish signals for the stock market.

But data from Charlie Bilello, Chief Market Strategist at Creative Planning, reveals a different story.

Since 1982, the S&P 500 has averaged a 14.9% gain in the 12 months following a Fed rate hike and an average gain of 11.2% in the 12 months following a Fed rate cut.