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ProCap Insights · July 20, 2026

The market expects the Fed to hike rates and these 2 sectors will react first

The market spent 2025 betting on rate cuts; since the Fed's December cut it has gotten seven months of nothing. Both Kalshi and CME fed funds futures now price a rate hike as the more likely 2026 move, and that single repricing splits the S&P 500 into winners and casualties.

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