Why didn't the stock market crash on 26Aug16 after stronger case for interest rate hike?

Discussion in 'Economics' started by helpme_please, Aug 26, 2016.

  1. Yellen said case for rate hike is stronger now. Why didn't the stock market crash?
     
  2. OptionGuru

    OptionGuru


    Higher interest rates will cause the market to rally. Why? Higher interest rates indicate a strong economy.



    :)
     
  3. ET180

    ET180

    Then hike it to 18% and let's take the S&P to 10,000.
     
    Cmoss likes this.
  4. Cant do, inflation.
     
  5. Fed fund futures barely moved, the market doesn't believe that a sept hike is coming and the odds of dec move is still only 50/50.
     
  6. Maverick74

    Maverick74

    How would raising interest rates 1/4 of a point cause the stock market to crash? How the hell did you come up with this logic?
     
    lovethetrade likes this.
  7. JayMe

    JayMe

    Rate hike means stronger economy, and it would uplift the Financial markets which have been depressed for a long while. And Financials run our system so Financial going up can't crash the economy. It means more personal and business credit, lending, mortgages, acquisitions, mergers!! Obvious result is serious profit :D
     
  8. zdreg

    zdreg

    why not 36%?
     
  9. thaitye

    thaitye

    iduno
     
  10. Bekim

    Bekim

    The time for them to raise rates into a strengthening economy has passed in my opinion, they can't keep them low forever so they are going to be forced to raise them in a somewhat weakening economy that looks like its getting stronger now but really isn't, but no one knows if they are really gonna raise them or not in Sept, so this uncertainty should cause somewhat of a sell off, but I really have no fucking idea:)
     
    #10     Aug 28, 2016