Part 3/8:
This development prompts concerns regarding stock market stability. Historical data reveals that previous spikes in interest rates have often preceded corrections in the stock market. For instance, similar surges occurred in March 2022, September 2022, August 2023, and April 2024, correlating with drops in the S&P 500 ranging from 5% to 10%. Crucially, these spikes were generally associated with aggressive rate hikes from the Federal Reserve, the U.S. central bank responsible for influencing interest rates across the economy.