Why does the Federal Reserve ’s interest rate hike stock fall

The Fed's interest rate hike means that a large amount of funds will flow into the US capital market, resulting in appreciation of the US dollar. Under such circumstances, most of the stock markets will fall. If most of the funds have gone to the US stock market, the funds flowing in the A -share market will decrease and the liquidity will deteriorate. Rating interest rate hikes is a country or region that improves interest in interest, so that commercial banks have increased the borrowing costs of central banks, and the interest in the market has also been forced.
This information:
The purpose of interest rate hikes include reducing currency supply, suppressing consumption, suppressing inflation, encouraging deposits, slowing market speculation, and so on. Ralely interest rate hikes can also be used as an indirect means to improve the currency value of other currencies in the country or region. In a narrow sense, interest rate hikes are the behavior of central banks in a country or region, which usually refers to improving deposit interest and loan interest, so that commercial banks and other financial institutions have increased the borrowing costs of central banks, and then forcing the market interest Also increase. The purpose of interest rate hikes includes reducing currency supply, suppression of consumption, suppressing inflation, encouraging private deposits, slowing or suppressing market speculation, and so on. Ralely interest rate hikes can also be used as an indirect means to improve the currency (exchange rate) of currencies in the country or region. Generally speaking, the direct purpose of interest rate hikes is to force commercial banks to borrow from the central bank at a more expensive cost, and then force the interest between banks (such as bank interest rates overnight and interest rates for banks). The cost of financing suppress malicious speculation.
. For example, a country or region will reduce interest rates when the currency is continuously appreciated in the country (or local), thereby increasing the currency supply, which can achieve the purpose of suppressing currency appreciation (this behavior must be successful, there are many prerequisites), there are many prerequisites), and there are many prerequisites). However, the country or the region will face the pressure of new prices, and has to raise interest rates to flatter prices (if the price reduction of interest rate reductions will increase prices further). Although negative interest rates largely reflect the necessity and urgency of interest rate hikes to a large extent, concerns about the risk of economic decline have become an important reason for hindering the introduction of interest rate hikes. Because of the fear of the two major growth engines of investment and exports, the market was permeated in the market for pessimism in the future of China's economic situation, so the introduction of interest rate hikes became cautious. Judging from the recent data, the market obviously exaggerated the risk of China's economic decline in a certain level. The current decline in the economy is still from the reasons for the base. In addition, there is no sign of severe deterioration. " The risk of hard landing has basically been eliminated.