Barclays' analysis of the five Federal Reserve tightening cycles since 1994 reveals that within one quarter of the first rate hike, the S&P 500 median fell by 3.9%, and the Russell 2000 small-cap index median fell by 7.2%. Among sectors, financials performed the worst, with a median decline of 8.4%, while energy was the only sector to record positive returns, with a median increase of 0.3%. In terms of style factors, value stocks generally outperformed growth stocks, with this divergence being even more pronounced among small-cap equities.