10 Hot Stocks to Watch Out For After The Fed’s Giant Rate Cut

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With the Federal Reserve cutting interest rates by 0.5%, savvy investors are now looking for opportunities in stocks that are poised to benefit. Historically, stock markets have performed well following rate cuts, with certain sectors often emerging as big winners. Here’s a look at 10 hot stocks to watch, each with a history of rising after similar cuts.

10 Top Hot Stocks to Watch Out For

We’ve combed though a couple of analyst picks to give you 10 of the hottest stocks following the Federal Reserve’s 50 basis points rate announcement. If you already have these stocks in your portfolio, congratulations and hold on for dear life! If you haven’t,now’s a good time to seriously consider an investment in the hot stocks below:

Alphabet: A Digital Powerhouse in an Economic Revival
Ticker: GOOGL | Price: $135.56

Alphabet, the parent company of Google, continues to be a dominant player in digital ads and cloud computing. Historically, Alphabet has shown resilience after rate cuts, as businesses tend to increase their marketing spend and tech investments. Alphabet saw growth during the 2020 rate-cut cycle and could see another surge as the economy improves post-cut.

JPMorgan Chase: Banking on Economic Growth
Ticker: JPM | Price: $147.89

JPMorgan Chase is well-positioned to benefit from lower borrowing costs, with increased demand for loans in both consumer and business sectors. In the past, JPMorgan’s stock rose after rate cuts, particularly during the 2008 financial recovery and the 2019 cuts. Its diversified banking services help weather interest rate fluctuations while driving long-term growth.

Crocs: Fashion’s Resilient Contender
Ticker: CROX | Price: $98.67

Crocs has been a surprise winner in the consumer discretionary sector. While it hasn’t been around for many previous rate cuts, consumer discretionary stocks like Crocs typically benefit from increased consumer spending following rate cuts. The company’s strong brand partnerships and solid revenue growth make it a hot pick in the current economic environment.

Marathon Oil: Fueling the Energy Surge
Ticker: MRO | Price: $27.34

Energy companies like Marathon Oil tend to thrive when the economy picks up steam after rate cuts. Historically, Marathon Oil has seen stock price increases during periods of economic recovery, such as after the 2016 and 2020 rate cuts. As global demand for energy rises, this stock is likely to benefit from the Fed’s recent moves.

Owens Corning: Building on Lower Rates
Ticker: OC | Price: $141.15

As a leader in the construction materials sector, Owens Corning stands to gain from a boost in homebuilding activity driven by lower borrowing costs. Historically, Owens Corning has performed well during post-rate-cut periods, especially as demand for construction and home renovation increases. The 2020 rate cuts provided a similar boost to the company’s stock.

Oracle: Powering Business Expansion in the Cloud
Ticker: ORCL | Price: $117.82

Tech stocks like Oracle often see strong gains after rate cuts as businesses ramp up spending on infrastructure and cloud technology. Oracle saw significant growth during the 2020 rate cuts, when many companies accelerated their digital transformation efforts. With its solid foundation in cloud services, Oracle remains a top pick in a post-rate-cut environment.

U.S. Bancorp: Tapping Into the Loan Boom
Ticker: USB | Price: $37.55

U.S. Bancorp is another bank that stands to benefit from an increase in loan demand following lower interest rates. Historically, U.S. Bancorp has seen stock price gains during periods of economic recovery, such as after the 2019 and 2020 rate cuts. Its focus on consumer banking and mortgages makes it a strong choice in today’s market.

Walmart: Winning the Consumer Spending Race
Ticker: WMT | Price: $160.67

Walmart consistently benefits from increased consumer confidence and spending following rate cuts. Historically, Walmart’s stock has performed well after previous rate reductions, especially during the 2008 recession and the more recent 2020 cuts. As one of the largest retailers in the world, Walmart is poised to capture more consumer dollars in this new economic phase.

Nvidia: Leading the AI Revolution
Ticker: NVDA | Price: $450.90

Of course Nvidia is part of this hot stocks list. The industry leader in AI and graphics technology has shown remarkable growth following past rate cuts. During the 2019 and 2020 rate cuts, Nvidia’s stock soared as businesses invested heavily in data centers and AI applications. Nvidia’s leadership in AI technology continues to make it a hot stock in the post-cut market.

Procter & Gamble: A Consumer Goods Giant
Ticker: PG | Price: $153.25

Procter & Gamble, a consumer staples titan, tends to benefit from steady demand in both strong and weak economic environments. Following past rate cuts, such as in 2008 and 2020, P&G stock showed resilience and steady growth. With its diversified product portfolio and consistent dividend, it remains a solid choice for investors looking for stability.

Hot Stocks Set to Thrive Post-Fed Rate Cut

Historically, these 10 stocks have shown strong performance after Fed rate cuts, making them hot picks for investors looking to ride the post-cut momentum. From tech giants like Alphabet and Nvidia to consumer staples leaders like Procter & Gamble, these companies are well-positioned to benefit from improved economic conditions. As always, invest with your head not your heart!

Which of these 10 hot stocks are you seriously considering? Let us know what you think!

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