Where are US equity markets heading with the Fed’s tendency to raise interest rates?

Global markets expert Nawras Hafez said there is a chance for US tech stocks to rise by the end of quest’year due to the increase in the prices of some of their shares and the increase in their revenues, while the growth rate of their net profits is weak, not exceeding 1 and 2%.

Nawras Hafez added, in An interview with Al-Arabiya, today, Sunday, that what is happening to tech stocks is something of a correction in light of fears about the possibility of raising interest rates by a large percentage, reaching 3% by the end of quest’year, according to market expectations, which increases the chances of the occurrence of some sort of recession, and if it does not, there will be a return to the upside of the shares that have fallen in significantly, representing an opportunity for long-term investors to purchase such shares.

The global markets expert explained that the Federal Reserve will rely on the data step-by-step to evaluate it, and with interest rates hike by half a percentage point, the economy will not be affected, but the economy may be affected with interest rates exceeding 2 and 3% by the end of the year, and we may see a slowdown in the data, but the period The current US economy will not be affected by the rise in interest rates because the data is strong and liquidity it’s high and the economy can hold on.

He referred to expectations that markets will continue to fear in the near term, especially with the possibility of a 3.25% hike in two-year US Treasury yields and a 50bp interest rate hike, which will push stock prices fall in the next short period as the value of the dollar rises, underscoring that the data are joint.

He said there is a negative sign in the markets, with a discrepancy in the performance of the indices, as the Nasdaq fell 20% from its highest level and the Dow Jones fell 10% from its highest level, the technology sector is in topping the chart decreases significantly, the financial sector rose while the energy sector benefited.

Nawras Hafez expects markets to fall further with the Federal Reserve’s determined desire to raise interest rates and reduce the budgetand fears could lead to further losses before markets stabilize and investors find an opportunity to buy back heavily.

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