The left hand chart illustrates the performance of the S&P 500 around the timing of the last rate hike from the Federal Reserve. The market performance can vary wildly from the strong run in 1995 to the continued selling in 2000 and the tech bubble. Overall, the end of the rate hiking cycle should be positive for equities. The right hand chart shows the relationship between earnings, equity prices and recessions. The market usually moves ahead of earnings as it prices in changes in the earnings outlook. However, there remains a disconnect between the path of the market and the path of earnings.