Additional hikes would pressure highly valued growth stocks, increase borrowing and refinancing costs, and create more market volatility. Also, selling stock does not always mean they expect the company to face problems. In July, this uptick of insider selling happened as the semiconductor sector, a key market leader, entered bear-market territory. The new Federal ReserveThe new Federal Reserve, led by Chairman Kevin Warsh, adds another layer of risk to the stock market. Historically, that has kept stock market returns negative (after three months from the first hike) and well below the average 12-month gains.