Why The S&P 500 Isn't Panicking As Oil Surges, War Spreads, The Fed Hikes

Live updates

1. 1h ago

   S&P 500 Resists Panic Despite Fed Hikes and Surging Oil

   The S&P 500 remains resilient despite a combination of Federal Reserve rate hikes, rising oil prices, and spreading war. While some equities have begun to feel the impact of an oil-driven bond yield surge, many Wall Street strategists believe the current stock rally and bull market can survive higher interest rates. Market reactions are mixed, ranging from stability to wobbles, though widespread panic has not materialized. However, some analysts warn that stocks are on red alert as the first rate hike may signal a series of future increases.

   Why it matters

   Rising bond yields typically pressure stock valuations by increasing borrowing costs and offering safer alternatives to equities. The intersection of geopolitical conflict and inflation-driving energy costs complicates the Federal Reserve's monetary policy. Investors are weighing these headwinds against the strength of the current bull market.

   What is confirmed

   • The S&P 500 has not entered a state of panic despite Federal Reserve rate hikes and rising oil prices.
   • Wall Street strategists believe the stock rally and bull market can survive Fed rate hikes.
   • Bond yields have surged due to rising oil prices.

   Still unconfirmed

   • Stocks are on red alert because a Fed rate hike could be the first of many.

   What to watch next

   • Further movement in the 5% benchmark yield
   • Additional Federal Reserve rate hike announcements
   • Changes in oil price stability
   Sources used for this update (11)

   1. finance.yahoo.com — Why stocks haven't tanked despite higher bond yields: Chart of the Day
   2. Bloomberg.com — S&P 500 Seen Dropping 10% on Fed Hikes, MRA Strategist Says
   3. Investor's Business Daily — Why The S&P 500 Isn't Panicking As Oil Surges, War Spreads, The Fed Hikes
   4. Bloomberg.com — Wall Street Strategists See Stock Rally Surviving Fed Rate Hike
   5. Axios — Why stocks are shrugging off rising interest rates
   6. Investing.com — Wall Street says rate hikes won’t kill the bull market
   7. Yahoo! Finance Canada — Oil-driven bond yield surge finally bites equities but JP Morgan says do not chase the sell-off
   8. Reuters — Stocks wobble but no sign of panic as yields surge
   9. Barron's — A Fed Rate Hike Could Be the First of Many. Stocks Are on Red Alert.
   10. marketplace.org — If the Fed hikes rates, here's how the stock market might respond
   11. Investor's Business Daily — Benchmark Yield Hits 5%. How Will Stocks Respond To A Fed Rate Hike?
   confidence 85%