MRA strategist: The Federal Reserve's interest rate hike may lead to a 10% correction in the S&P 500

Dean Curnutt, CEO of MacroRiskAdvisors, stated that the potential initiation of an interest rate hike cycle by the Federal Reserve could put pressure on the S&P 500 index, with expectations of an 8% to 10% pullback in U.S. stocks.

Curnutt noted that rising energy costs and recent inflation data have pushed the yield on U.S. 10-year Treasury bonds above 5%, and the market has significantly increased its bets on the Federal Reserve raising interest rates.