📈 The Market Rips on Fed News

Stocks to target based on rate cuts

The stock market had one of its best days of the year yesterday, fueled by comments from Jerome Powell and the Fed.

What Happened Today?

At the FOMC today, the Fed announced that they would hold interest rates unchanged. This wasn’t a surprise.

They also announced that as of now they are anticipating cutting interest rates 75 basis points next year. This was a surprise.

Powell also mentioned that he is willing to cut rates regardless of whether there is a recession or not.

Going into this FOMC, there was a 39% chance that the Fed cuts rates by March. That probability has now increased to 68.1%.

You can find the FedWatch tool that tracks rate probabilities (image below) here.

Stocks to Target?

The best way to determine which stocks you want to be in is by comparing performance across sectors. This will tell you which sectors are rising at the greatest rates, which is where you want to get involved.

By doing this, you can see which names are benefitting most from the rate cut news. Unsurprisingly, some of the top performers are lending companies, regional banks, and REITs. These names should be at the top of your list going forward.

We have talked about these names for some time and why they stand to benefit the most from a shift in monetary policy.

For more information on what transpired yesterday with the Fed, watch the video below: