Stocks Show Resilience Amid Rate Hikes as Investors Bet on Strong Economy and Earnings

Despite market turbulence, stocks have held up well with the S&P 500 posting a modest gain this week.

The resilience suggests investors believe the economy is strong enough to withstand higher rates.

Pain thresholds have edged up but are not signaling alarm bells like past rate hike cycles.

Credit markets are not buckling - investment grade corporate bond spreads remain contained.

Earnings momentum is ticking higher and profits are expected to drive stocks over the long-term.