For me, the bigger story is not the 25bp hike itself, but how firmly the Fed is signalling that rates may stay higher for longer. A unanimous 12-0 decision, together with 16 of 18 officials still seeing at least one more hike this year, tells me inflation remains the key concern despite the growing pressure from the White House. Trump calling for rates at 1% or lower is a very different message from the Fed’s current stance, which makes the question of central-bank independence even more important for markets.

I am not changing my long-term AI and semiconductor thesis because of one rate hike, but I am becoming more selective about adding. Higher-for-longer rates can pressure high-valuation growth stocks and increase volatility, so I would rather use sharp pullbacks to accumulate quality names gradually instead of chasing strength. For me, this is a period to stay patient, manage position sizes, and let the market give me better entry points.