Citi strategists expect global equity markets to continue climbing through mid-2027, supported by strong corporate earnings even as central banks prepare to tighten monetary policy. CME Group data puts the probability of a Federal Reserve rate increase on Wednesday at 92%, which would be its first hike in three years and its first increase since cuts began nearly two years ago. Fed Chairman Kevin Warsh is scheduled to brief the media after the decision. Citi’s review of tightening cycles since the 1970s found that global stocks gained in about one-third of the three months after an initial hike but produced average 12-month returns of about 7% in most cycles. International developed markets, particularly Japan and Europe, historically outperformed U.S. equities by 5% to 10% over one year, while value and cyclical shares outperformed growth and defensive sectors. Citi also expects rate increases from the Bank of Japan, two additional European Central Bank hikes and two Bank of England hikes. The 10-year U.S. Treasury yield has moved above 5%, while Brent crude and West Texas Intermediate remain above $100 a barrel, increasing inflation and fixed-income market risks. Bitcoin fell 2% to about $75,000 after senators failed to advance the Clarity Act, a proposed comprehensive framework for digital-asset regulation. Nasdaq futures rose 0.4% in Wednesday premarket trading, after major indexes ended lower Tuesday. Citi maintained its forecast for earnings-driven gains in the MSCI All-Country World Equity Index, while flagging geopolitical tensions and rising market exuberance as risks. August retail sales, the housing market index, the Fed’s updated dot plot and Warsh’s briefing were due to shape trading before the closing bell.