Fed Rate Hike Could Send S&P 500 Down 10%, Macro Risk Advisors Warns

The signal here is that a tightening cycle is being treated as an equity-margin problem rather than a pure rates story, which is what gives the call its bite. That framing matters most for anyone holding broad index exposure into the Fed decision. Whether the margin-compression argument gains traction beyond this one firm is the open question, and it is the thread to follow as positioning adjusts around the meeting.