There Is Now An 83% to 90% Chance the Fed Raises Interest Rates on Sept. 16. Here's What History Says Would Happen to the S&P 500 Index Next.

Key Points Hotter-than-expected inflation data last week has led many investors to believe the Federal Reserve will raise interest rates at its upcoming September meeting. Bond yields have soared to multi-decade highs. Historically, stocks have not fared well during rate-hiking cycles, though the pace of the cycle is an important factor. 10 stocks we like better than S&P 500 Index › Following hot inflation data last week, there is now a high likelihood that the Federal Open Market Committee (FOMC), which dictates monetary policy for the Fed, will raise interest rates by a quarter point when its meeting concludes on Sept. 16.