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Markets Now Pricing in Rate Hikes Through 2027 as Fed Cut Expectations Evaporate
Key takeaways
- The analyst who called NVIDIA in 2010 just named his top 10 stocks.
- The conversation about the Federal Reserve has flipped in a way that should make anyone holding long-duration assets sit up.
- The numbers behind that pivot are striking, because you had 2 to 3 cuts priced in just three months ago.
Markets Now Pricing in Rate Hikes Through 2027 as Fed Cut Expectations Evaporate Omor Ibne Ehsan Mon, May 25, 2026 at 6:00 PM GMT+7 4 min read ^GSPC NVDA Quick Read The S&P 500 (SPY) trades at a forward P/E of 21x while real yields on 10-year TIPS have climbed to 2.18%, creating discount-rate pressure on long-duration assets and growth stocks.
Federal Reserve rate expectations have reversed from pricing 2-3 cuts three months ago to now expecting hikes totaling roughly 30 basis points through 2027 due to sticky inflation from oil tariffs and AI cycle demand, alongside resilient equity valuations and a widening fiscal premium.
The analyst who called NVIDIA in 2010 just named his top 10 stocks. Get them here FREE.
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