Wall Street Expects Bad News From the Federal Reserve This Week. History Says a Stock Market Correction May Follow.

Key Points Wall Street expects two quarter-point rate hikes from the Federal Reserve in 2026, one in September and another in December. Historically, the major stock market indexes have frequently suffered corrections following the beginning of a net rate-hike cycle. The major stock market indexes have recouped their losses following every past recession, so investors should be prepared to buy the dip. 10 stocks we like better than S&P 500 Index › The U.S. stock market is having another fantastic year, driven by massive spending on artificial intelligence infrastructure.