The US stocks face a second decline in three quarters after last week’s rate hike and higher oil prices with the possibility for the economy to grow slower than estimated.

The US Federal Reserve boosted interest rates to 2.75% from 2.5%. This is the seventh rate hike since June 30.
"Stocks typically go through a rocky period when the Fed is raising rates," says John Forelli, senior vice president at Independence Investments.

The S&P 500 declined 3.3% to 1171.42 last week. The Dow Average dropped 3.2% to 10,442.87.

``The profit cycle is likely to slow, and probably slow pretty dramatically. Rising energy prices are going to be one of the factors that are going to be taking their toll,’’ said Ralph Segall, who helps manage $4.3 billion at Segall Bryant & Hamill in Chicago.