June Market Wrap: Despite Rate Hike Worries, Stocks Land Solid Performance

stocks market wrap hike worries
Middle East
  • Date: 01-Jul-2021
  • Source: Investing.com
  • Sector: Economy
  • Country: Middle East
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June Market Wrap: Despite Rate Hike Worries, Stocks Land Solid Performance

The people who buy and sell stocks for a living seemed to panic in mid-June. The way they saw things, the Federal Reserve was suddenly signaling it might again—at the end of 2022 instead of sometime in 2023.

Mind you, the Fed did not explicitly say it would raise rates. Only that some of the people who vote on rate changes thought rates might have to go up earlier than anticipated because of a stronger-than-expected rebound from the economic ravages wrought by the COVID-19 pandemic.

Investors didn't care. They started selling and—over a three-day period—knocked the Index down 2% and the down 3% from their June 15 closes. The and reacted less strongly, falling less than a half percentage point each.

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