Returns to stocks in the S&P 500 materials sector during periods of rising Fed Fund rates: an empirical analysis 1999-2023

Authors

Presenter(s)

Matthew Robert Dahlke

Comments

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

Files

Description

The returns to stocks in the S&P materials sector can be highly volatile. Because rising interest rates are often associated with stock market volatility, in this study I look at four different time periods of rising Federal Fund rates within the overall 1999-2023 period to determine if materials sector stocks show a persistent downward trend in returns. I evaluate two schools of thought: (1) rising Federal Fund rates due to Fed monetary tightening policies will have a negative return effect on materials sector stocks and (2) rising Federal Fund rates primarily due to economic growth will have the opposite effect on returns to material sector stocks. The top 20 stocks in the materials sector are used to carry out the study.

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

"Returns to stocks in the S&P 500 materials sector during periods of rising Fed Fund rates: an empirical analysis 1999-2023" (2024). Stander Symposium Projects. 3311.
https://ecommons.udayton.edu/stander_posters/3311