1. Inflation fears are evident, but bond markets remain calm. 2. Gold prices have surged 51% over the last year. 3. The bond market indicates stable inflation expectations, close to the Fed's target. 4. Job market weakness could signal future economic challenges. 5. Current economic growth may pressure the Fed to raise interest rates.
If the Fed raises rates due to strong growth, SPY could decline. Historical examples show stocks often react negatively to rate hikes, like in 2018.
The article discusses pertinent economic factors affecting interest rates, directly influencing SPY. The bond market's stability contradicts stock market behavior during inflation fears.
Immediate reactions to Fed decisions tend to affect SPY quickly. In past scenarios, rate hikes led to rapid declines in stock prices.