The U.S. stock market has become more volatile after the Federal Reserve raised interest rates by 25 basis points. The S&P 500 ended lower as rising Treasury yields and persistent inflation concerns pressured sentiment. Even so, consumer spending remains resilient, while economic activity, productivity and capital investment continue to show underlying strength. 

Near-term volatility may persist as investors weigh higher borrowing costs, elevated oil prices and inflation risks. However, the broader setup remains mildly positive because economic growth is still holding up and selected areas of the market continue to show strength.

In this environment, investors may benefit from staying selective. Relative…