#The Fed Hiked — So Why Didn’t Stocks Celebrate? 👀-To The Moon - Tiger Brokers Online Investing Community

#The Fed Hiked — So Why Didn’t Stocks Celebrate? 👀

The 25bp Fed hike was expected.

The market knew it was coming.

Yet the reaction was surprisingly muted:

📉 $SPY -0.44%

📉 S&P 500 -0.45%

➡️ $QQQ +0.03%

🟢 Gold +1.10%

So maybe the headline rate decision wasn’t the real story.

The market is looking past today and toward what comes next.

If inflation remains persistent and policymakers still see another hike ahead, the question becomes whether today’s prices already reflect that tighter path.

At the same time, there’s another side to the equation:

💰 Earnings remain solid

📈 Growth expectations haven’t collapsed

🏦 Major banks remain constructive on the economic outlook

That creates a tug-of-war:

Higher-for-longer rates vs. resilient corporate earnings.

For me, the key signal isn’t today’s 25bp move.

It’s whether the market can keep absorbing a potentially tighter Fed without earnings expectations breaking down.

👀 If another hike is already priced in, what happens if the Fed actually pauses next?

Fed Hikes for First Time in Three Years — Why No Market Relief?

The Fed raised 25bp to 3.75%–4.00% at 2 a.m. Beijing Wednesday, its first hike since July 2023. The result was in line and stocks still could not rally: QQQ +0.03% to $704.72, SPY −0.44% to $754.05, S&P 500 −0.45% to 7,551.81, gold +1.10%. The weight was the dot plot — 16 of 19 officials want another hike this year — and Chair Warsh saying inflation is too high, too persistent, with no clear improvement in the summer data. Morgan Stanley, JPMorgan and Goldman are still constructive on earnings and growth. But the market priced one hike; the dots say two. Has the market accepted the second one?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

#The Fed Hiked — So Why Didn’t Stocks Celebrate? 👀

Comments