The reads below are for when the Fed sounds more hawkish than expected. Expect the opposite when the Fed sounds more dovish than expected. Hotter was the last call.
Real EstateUsually hurtsProperty companies borrow heavily; higher rates raise their costs and lower building values.
TechnologyUsually hurtsHigher rates for longer hit tech hardest, because so much of its value is profits years away.
UtilitiesUsually hurtsUtilities trade like bonds and fall when the Fed signals higher rates.
Basic MaterialsUsually hurtsA hawkish Fed lifts the dollar, which makes dollar-priced metals dearer for foreign buyers.
Communication ServicesUsually hurtsGrowth-priced media and internet companies fall when rates stay high.
Consumer CyclicalUsually hurtsCostlier car loans, mortgages and credit cards mean less consumer spending.
IndustrialsUsually hurtsCostlier financing slows factory and equipment orders.
Consumer DefensiveLittle effectEveryday essentials sell either way.
EnergyLittle effectOil prices matter more than rates for energy companies; little reaction.
Financial ServicesLittle effectBanks earn more on loans when rates stay high, but a flatter curve and growth worries offset it; roughly a wash on the day.
HealthcareLittle effectHealthcare demand does not depend on rates.