MacroRiskAdvisors CEO Dean Curnutt said a Fed rate‑hike cycle could induce an
8–10% correction in the S&P 500. He cited rising energy costs and recent
inflation that have pushed the U.S. 10‑year yield above 5%, prompting markets to
sharply raise odds of further Fed tightening. Curnutt warned additional hikes
would compress margins for firms unable to pass on costs and could shock a
market he views as under‑hedged for volatility. He likened the setup to
2018—when the S&P peaked in September and fell about 10% across October–November
before weakening in December—and said a second down‑leg by year‑end is possible
if the Fed keeps hiking.
