The Federal Reserve raised interest rates for the first time in over three years, creating new risks of market corrections for US stocks.
Historical data shows average maximum three-month declines following initial rate hikes of 10% for the S&P 500, 12% for the Nasdaq, and 9% for the Dow.
Most Fed officials project another quarter-point hike in 2026, pushing the federal funds rate to 4%–4.25% to lower inflation.