Wall Street widely expects the Federal Reserve to raise rates this week, with the market pricing in a 90% likelihood that the federal funds rate will rise to 3.75%-4.00% following Wednesday's decision. The probability of two more increases in October and December has also surged. Unusually, the stock market could rally in this scenario, as major averages treated it positively on Friday. Investors hope rate hikes will tame inflation and anchor long-term bond yields, especially after the 10-year Treasury yield hit 5% on Monday for the first time since 2023. Analysts from Horizon and JPMorgan suggest that the Fed's signaling impact and the normalization of bond yields could be positive for equities.