The Federal Reserve’s hawkish shift is forcing investors to reevaluate the rally in so-called value stocks, which have taken a hit in recent days after ripping higher for most of the year. Shares of banks, energy firms and other companies that tend to be sensitive to the economy’s fluctuations have tumbled following the Federal Reserve’s meeting on Wednesday, when the central bank surprised investors by anticipating two quarter-percentage-point rate increases in 2023 amid a recent surge in inflation. The Russell 1000 Value Stock Index is down 4% from its June peak, though still up 13.2% this year.
