Why a rally in growth stocks could signal that the Fed’s hawkish stance has passed its ‘peak’

Growth stocks have been outperforming value stocks of late as investors are beginning to wonder if the Federal Reserve has already peaked in its plans to raise interest rates to combat high inflation.

Recent bets on fed funds futures have pointed to a possible return to rate cuts sometime next year, while 10-year US Treasury yields have slipped below 3%. Corporate bond spreads have widened as recession concerns mount. But the drop in Treasury yields appears to be giving tech a boost…