This article explores how changes in interest rates impact stock market performance Interest rates are a fundamental economic factor that influence various sectors of the economy, including the stock market. Set by central banks, such as the Federal Reserve in the United States, interest rates determine the cost of borrowing money. Their adjustment can lead to significant fluctuations in the stock market. This article explores how changes in interest rates impact stock market performance, discussing mechanisms of influence, historical examples, and strategies investors might adopt in response to interest rate changes. The Mechanism: Interest Rates and the Stock Market 1.…
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