Tag: Federal Reserve raises

Why Higher Bond Yields Hurt Stocks

When interest rates rise, the prices of bonds and bond-related investments tend to fall. This is because investors can earn a higher return from other investments, so they don’t need to settle for lower yields from bonds. The prices of stocks also tend to fall when interest rates rise. This is because stocks are seen […]

What Does A Rate Hike Mean For Stocks

The Federal Reserve’s decision to hike the federal funds rate by a quarter of a percentage point has major implications for the stock market. Rising interest rates can be a negative for stocks, as they increase the cost of borrowing money for companies and can lead to a slowdown in economic growth. The stock market […]