Hawkish Fed gives value stocks a boost

On uptrend: Shoppers visit a shopping mall in Miami, Florida. The Fed is expected to raise rates at least three times this year to battle surging consumer prices. — AFP

NEW YORK: Investors are recalibrating their portfolios to account for a more hawkish Federal Reserve (Fed), as signs that the central bank is ready to pull out the stops in its fight against inflation has shaken up markets in the first week of 2022.

Yields on the benchmark 10-year US Treasury are on track for their biggest weekly gain since September, 2019, while technology and growth stocks have tumbled and investors snapped up shares of banks, energy firms and other economically sensitive companies.