How Do Information Technology Stocks, Return Wise, do when Fed Fund Rates are Rising? An Empirical Analysis 1999-2023

Authors

Presenter(s)

Christopher Tristen Arkenau, Julia Catharine Reinker

Comments

Presentation: 9:00-10:15, Kennedy Union Ballroom

Files

Description

Information technology sector stocks are by-in-large, considered growth stocks and are also considered interest rate sensitive. In this study, I look at the returns to the top 20 stocks by market cap in the S&P 500 information technology sector to determine if they are inversely related to rising fed fund rates. I argue that if rising fed fund rate are due to strong economic growth and not monetary tightening, there is a positive relationship between IT stock returns and the fed fund rates. If the increase in fed fund rates is due to a policy of fed monetary tightening, then an inverse relationship will exist. I test my assumptions for four periods of rising fed fund rates within the overall period 1999-2023.

Publication Date

4-17-2024

Project Designation

Independent Research

Primary Advisor

Robert D. Dean, Jon A. Fulkerson, Henry G. Willmore

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium, School of Business Administration

Institutional Learning Goals

Scholarship

Recommended Citation

"How Do Information Technology Stocks, Return Wise, do when Fed Fund Rates are Rising? An Empirical Analysis 1999-2023" (2024). Stander Symposium Projects. 3308.
https://ecommons.udayton.edu/stander_posters/3308