Moody’s: US rate hikes could ‘pummel’ stocks

Sharp rises in US interest rates could yet “pummel” US stocks, a leading economist at Moody’s Capital Markets has warned.

The warning comes after the Dow Jones index of the largest industrial shares in the US this week passed through the 20,000 level for the first time.

US stocks have climbed sharply since the election of Donald Trump in November, as the new president has pledged on the campaign trail to spend big on rebuilding America’s dilapidated infrastructure.