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How Do Rising Interest Rates Affect the Stock Market?

how do rising interest rates affect the stock market

The U.S. Federal Reserve is set to hold a policy meeting this week to decide whether or not to raise interest rates.

All of the buzz has investors wondering: How do rising interest rates affect the stock market?

Here's how the four most popular types of assets perform when interest rates rise...

Will Real Estate Investment Trusts Crash If the Fed Raises Interest Rates?

The Fed

The Federal Reserve will meet this week to consider raising short-term interest rates for the first time in 10 years.

Investors think real estate investment trusts will suffer if the Fed issues a rate hike.

Here's why that couldn't be further from the truth...

Dow Jones Industrial Average Moving Today Ahead of FOMC Meeting

Dow Jones

Futures for the Dow Jones Industrial Average today (Tuesday, Sept. 15) forecasted a 2-point decline as investors look toward this week's critical FOMC meeting.

This week, the central bank will decide whether to raise interest rates for the first time since 2006.

Here's everything else investors need to know about the Dow Jones Industrial Average today...

Will an Interest Rate Increase Happen at This Week's FOMC Meeting?

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An interest rate increase is the biggest topic for Fed officials during this week's two-day FOMC meeting on Wednesday and Thursday.

While many economists believe the Federal Reserve should hold off on raising interest rates this month, Money Morning Chief Investment Strategist Keith Fitz-Gerald says investors shouldn't assume the Fed will make the smartest decision.

He made his regular appearance on FOX Business this morning and explained the one reason why the Fed may still raise rates...

Keith Fitz-Gerald: "Federal Reserve Policy Is Past Its Prime, Ignores Middle Class"

KFG

Money Morning Chief Investment Strategist Keith Fitz-Gerald talked U.S. Federal Reserve policy with "Varney & Co." host Stuart Varney on FOX Business Monday morning.

Watch the video to see what Fitz-Gerald, a 33-year global market expert, predicts will come out of the FOMC meeting on Wednesday and Thursday (Sept. 16-17) - and why he's so fed up with Fed policy...

Stock Market Today Down Ahead of This Week's Fed Meeting

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The U.S. stock market today (Monday) opened lower as investors cautiously await this week's FOMC meeting. At the meeting, Fed officials will decide whether to raise interest rates for the first time since June 2006.

The Dow Jones Industrial Average, S& 500, and Nasdaq all opened firmly lower this morning. Just after noon, the three major benchmarks were down 0.44%, 0.48%, and 0.46%, respectively.

Here's what else investors need to know about the FOMC's impact on the stock market today...

FOMC Meeting This Week: What to Watch For

When the Fed hiked interest rates this week, the media missed out on the interest rates that really matter. Those have been moving up for a while now, and it's a disaster...

The September FOMC meeting takes place this week when U.S. Federal Reserve officials gather for a two-day assembly on Wednesday and Thursday (Sept. 16-17).

This is the Federal Reserve’s sixth scheduled meeting of 2015, with meetings in October and December to follow. A press conference by Fed Chairwoman Janet Yellen will follow the FOMC meeting.

Here's what investors are watching for during this week's FOMC meeting...

The Only U.S. Dollar Move That Matters Now

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You might think the U.S. dollar is going to crash. That makes sense as the value of paper currencies continues to be destroyed by central banks trying to reduce their debt.

But the dollar's been getting stronger since 2014. And if it moves up through its next resistance level, it would rock financial markets.

Let me show you how to get this right. Because everything depends on what happens to the dollar.

Dow Jones Industrial Average Dips Today as FOMC Meeting Looms

the fed

Futures for the Dow Jones Industrial Average today (Monday, Sept. 14) forecasted a 24-point decline as investors look toward this week's critical FOMC meeting.

This week, the U.S. central bank will decide whether it will raise interest rates for the first time since 2006, a decision that isn't being taken lightly by investors.

Here's what else investors need to know about the Dow Jones Industrial Average today...

Will an Interest Rate Hike Affect Stocks?

the fed

The Federal Reserve will hold a two-day policy meeting next week on Sept. 16 and 17, and the biggest decision will be whether to impose an interest rate hike.

And that has investors wondering what type of impact an interest rate hike would have on stocks.

Here's everything you need to know now...

Will the Fed Raise Interest Rates?

The Fed

The U.S. Federal Reserve is preparing for a two-day meeting on Sept. 16 and 17, and investors around the world are wondering "Will the Fed raise interest rates?"

The Fed has been adamant about raising interest rates for the first time since 2008 this year, and it looked to be almost certain the rate hike would occur in September.

That was until the markets saw extreme volatility in August. Here's what investors need to know now...

Peter Schiff: "The Fed Won't Raise Rates, It's Part of the Bluff"

The Fed

An all-important U.S. Federal Reserve meeting on Sept. 16-17 will decide whether interest rates will be raised for the first time in nearly a decade.

But Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, doesn't think the Fed is actually even considering a rate hike, despite speculation.

In fact, he predicts the Fed may be forced into QE4. Here's why...

After August Jobs Report, Will the Fed Raise Interest Rates?

Dow Jones futures

Will the Fed raise interest rates sooner than later due to the new job numbers? The data is set for release this Friday, Sept. 4, and the numbers are good indicators of what's to come.

Depending on how committee members view the jobs report numbers, interest rates could spike for the first time since June 2006.

Here's what you need to about to know about handling your hard-earned cash during these volatile times...

Fed Opacity is Suffocating the Markets

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Market observers continue to give short shrift to the fact that the Federal Reserve is the perpetrator of the "Red Wedding" in the markets. The Federal Reserve doesn't trust the markets. It thinks it knows better than the markets how to set the price of capital and create the conditions for economic growth.

Every once in a while, we get an errant number like the revised second quarter GDP number of +3.7% to tease us into thinking that they know what they are doing. But once we look below the headline number, we find the same weakness that has plagued the economy since the financial crisis. Years of ZIRP and QE have suffocated the economy in too much debt that will continue to smother growth for years to come.

The Fed continues to speak out of both sides of its mouth, when its best course of action would be to say nothing. On Wednesday, New York Fed President Bill Dudley sought to calm markets by saying that the case for a September rate increase was "less compelling." On Friday, Fed Vice Chair Stanley Fischer said that a September hike was still a possibility.

Peter Schiff on U.S. Dollar Crisis: "The Dollar Bubble Is Going to Burst"

Stock Market Crash

Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, believes a U.S. dollar crisis is underway.

"The dollar is very overvalued...and the dollar is a bubble," he told Newsmax Prime on Aug. 11. "This dollar bubble is going to burst."

Indeed, two weeks later and Schiff's prediction proved timely. The U.S. dollar index has suffered a fourth-straight loss, and U.S. markets have plummeted in the worst weekly sell-off in four years.

Many blame the surprise yuan devaluation. But Schiff believes investors should be worried about the United States, not China...