Fed hike 'wouldn't be the worst thing' for stocks - Citi's Chronert

Citi analyst Scott Chronert stated that a preemptive September Fed rate hike 'wouldn't be the worst thing' for equity markets, suggesting markets may respond positively unless it signals the start of a broader hiking cycle. Chronert believes sustaining equity valuations depends mainly on stability in the long end of the Treasury yield curve, particularly the 10-year yield, rather than the Fed funds rate.

Why it matters: The AI investment narrative is increasingly positive, with mega-cap technology stocks expected to find support and drive broader market gains as confidence builds in its persistence.