US Stocks Face Rate-Hike Jitters Amid Fed's Tightening Cycle

The US stock market may face renewed volatility as investors assess the Federal Reserve's rate hike path.

Last week, the Fed raised its benchmark interest rate by 25 basis points to 3.75%-4%, marking its first increase in over three years.

The central bank signaled further tightening could follow to combat persistently high inflation.

A Reuters report cited data suggesting that equities can come under pressure during the early stages of a Fed tightening cycle, with a median decline of 2.6% in the S&P 500 three months after the first rate hike across six cycles since 1994.