# Fed Rate Hikes Boost Stock Market

> Historical data shows stock market gains after Fed rate hikes, not cuts.
- Title: Fed Rate Hikes Boost Stock Market · Seekingalpha | Shortify
- Summary: Historical data shows stock market gains after Fed rate hikes, not cuts. Historical data indicates stock markets often rise after Fed rate hikes compared to…
- Keywords: fed, stock market, rate hikes, investing, money, business, Rate, Hikes, Boost, Stock, Market, Seekingalpha
- Source: Seekingalpha — https://seekingalpha.com/article/4955623-surprising-case-for-investing-fed-raising-rates
- Author: Invesco US
- Published: 2026-10-20T18:20:00+00:00
- Read time: 1 min
- Topics: fed, stock market, rate hikes, investing, money, business
## Historical Stock Market Trend
Historically, the stock market performed better over the subsequent 1-, 2- and 3-year periods following rate hikes than it did following rate cuts.
## Fed Rate Policy Context
The Fed generally raises interest rates when nominal economic growth is strong and cuts rates when economic conditions are deteriorating.
## Investor Response Strategy
Rather than viewing every Fed hike as a warning to pull back, history suggests investors may want to consider a different response.
## Key takeaway

Historical data indicates stock markets often rise after Fed rate hikes compared to rate cuts.