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These stocks won big after the last three Fed rate hikes


As investors prepare for another likely three-quarter point increase from the Federal Reserve on Wednesday, a glance at recent history indicates that certain stocks have been winning big on such days and could triumph again. Markets have recently grown comfortable with the prospect of a three-quarters point move that’s expected from the central bank as it tries to tame rocketing prices. At the same time, investors are closely watching Fed Chairman Jerome Powell for clues as to what the central bank might do at its next meeting in September, with many anticipating a still tougher Fed in the months ahead . If history is any indicator, markets have liked recent rate hikes from the Fed . The S & P 500 rallied 2.24%, 3% and 1.46%, respectively, on the last three days that the Fed tightened policy. Those reactions have been stronger than the responses seen in 1994, with the 3% rally in May ranking as the fifth best Fed day out of a total of 228, according to an analysis from Bespoke Investment Group. Should that pattern persist, these stocks that won big during the last three hiking days may triumph again on Wednesday. To find potential winners this time around, CNBC Pro used FactSet data to search for names with the biggest median move on the last three Fed days and that consistently gained at least 1% in the subsequent market rallies. The screen uncovered a host of beaten-up stocks tied to the consumer, which might benefit from the Fed quashing surging prices and dampening economic growth. But to be sure, while many of the stocks do benefit when the market rallies, the list also turned up several highly volatile and risky names. Here are 20 stocks that saw the largest Fed Day moves, on average: Several beaten-up technology stocks made the cut, including battered chip stock Advanced Micro Devices , Tesla and social media giant Meta Platforms . Shares of all three companies are trading at least 35% off their 52-week highs, with Meta Platforms down a whopping 57%. On average, the stocks added 5.5%, 5.4% and 4.8%, respectively, over the last three Fed decision days. Some popular consumer-focused stocks such as Norwegian Cruise Line and Starbucks also made the cut and rallied an average of more than 5% each. The cruise line company enjoyed a median move of 5.5% during those last three Fed days, with shares rising the most on March 16 (5.9%). Starbucks soared nearly 10% alone on May 4. Enphase Energy on average saw the biggest median gain (7.6%) within the group and Tuesday reported strong quarterly results . Shares of the solar energy equipment company have rallied more than 36% this year as natural gas prices surged. A recent note from Goldman Sachs called Enphase one of a number of solar names that could outperform and beat expectations this earnings season. Etsy , Moderna and Boeing also made the list of Fed day winners.

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