Will an interest-rate rise hit US stocks?

American stocks have hit new records amid more upbeat economic data. More than 200,000 jobs were added to payrolls in June, the fifth month in a row of solid gains. The unemployment rate, now 6.1%, fell to a six-year low. But things might get trickier from here on in.

As the economy improves, the end of money printing – followed by interest-rate rises – draws nearer. And the withdrawal of central-bank stimulus could give markets a nasty jolt.

History suggests that after some initial jitters, equities cope reasonably well with tighter monetary policy. Interest-rate hikes may temper growth [...]

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