The S&P 500 has gained about 100% since the start of 2023, driven by enthusiasm for AI and growth stocks, but rising inflation from surging energy prices led the Fed to lift its federal funds rate by a quarter point to 3.75%–4%, its first hike in three years. FOMC minutes show most participants expect another increase by year-end, and CME's FedWatch tool puts the odds of a December hike above 88%. The article notes that higher rates can pressure corporate earnings, consumer spending and stock valuations, and make bonds more attractive than stocks. Still, history shows the S&P 500 has always recovered and gone on to gain significantly in the following years.
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Related tickers and likely impact
DXY
▲ Likely positiveRelevance: high
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 101.98 |
| Change that session | +0.20% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: high
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/19/2026 | 718.36 |
| Change that session | +1.21% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: high
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/19/2026 | 766.48 |
| Change that session | +0.42% |
AUD/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 0.69799 |
| Change that session | +0.49% |
EUR/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 1.12125 |
| Change that session | -0.24% |
GBP/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 1.33040 |
| Change that session | -0.20% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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