The stock market already peaked and will 'roll over' after a few more Fed rate hikes, says Jeffrey Gundlach

• Stocks already peaked and will head lower after more Fed rate hikes get underway, said DoubleLine Capital's Jeffrey Gundlach.
• "I think the market will roll over once the Fed raises rates a couple more times," he told CNBC late Wednesday. 
• The rate hikes and the Fed's expected trimming of its bond holdings will be a "double whammy," he added.

DoubleLine Capital CEO and cofounder Jeffrey Gundlach said the stock market already peaked and predicted a downtrend after further rate hikes from the Federal Reserve.

The comments came after the Fed lifted benchmark rates by a quarter point, its first increase in nearly four years, as policymakers try to tame high inflation.

"I think the market will roll over once the Fed raises rates a couple more times," Gundlach told CNBC late Wednesday. 

Meanwhile, Fed Chairman Jerome Powell also indicated that the central bank will start to shrink its bond holdings soon.

Gundlach said the Fed's trimming of its balance sheet has been correlated with a "significant headwind for the S&P 500."

That could deal a sharp blow to investors. The stock market has been relatively stable going into the rate hiking cycle as the Fed has been behind the curve with its accommodative policy, said Gundlach. 

But now, interest rate hikes and a reduction in bond holdings will present a "double whammy" that he expects to begin soon. 

"It's a really bad bet to count on the Fed engineering a soft landing in this kind of environment with the curve partially inverted," Gundlach said.