Market participants have observed the 0.5 percentage point cut on September 18 while the economy proved resilient and the S&P 500 gained 30% since 2022, surpassing the average of the past four decades.
Liz Ann Sonders, Chief Investment Strategist, and Kevin Gordon, Senior Investment Strategist of the Schwab report expected the S&P 500 to come out with a positive return in the next 12 months following the initial cut.
As the Fed tries to slow down inflation without triggering a recession, the stocks would likely be dependent on the economical status of the country.
In the meantime, Jefferies group has published a list of stocks benefitting from the cut, also cited by CNBC. The list includes Alphabet (GOOGL), Crocs (CROX), JPMorganChase (JPM), Marathon Oil (MRO) and Owens-Corning (OC).
Paul LaMonica of the magazine Barron also listed the following stocks as beneficiaries of the Fed’s attempted soft landing: Dayforce (DAY), IBM (IBM), Oracle (ORCL), TotalEnergies (TTE) and Walmart (WMT).
In addition to the above, Morningstar in June listed the following five stocks prior to the rate cut which may as well receive blessings from the foregoing, these include Crown Castle (CCI), Realty Income (O), WEC Energy (WEC), Entergy (ETR) and U.S. Bancorp (USB).
