Published on 27 Sep 2022 on Insider Monkey via Yahoo Finance
10 Best Materials Stocks to Buy After Fed’s Latest Rate Hike
In this article, we will be taking a look at the 10 materials stocks to buy after the Fed's new policy. To skip our detailed analysis of these stocks, and recent policy measures and their consequences, you can go directly to see the 5 Materials Stocks to Buy After Fed's Latest Rate Hike.
On September 21, 2022, Jerome Powell, Chair of the Federal Reserve, commented that he and his fellow policymakers would continue attempting to beat inflation down. One of the more recent moves the Fed made in this attempt was another hike in the interest rates. According to Reuters, the hike constituted a rise of about three-quarters of a percentage point for the third time in a row, indicating to the market at large that borrowing costs would continue to rise in 2022. With this particular hike, the Federal Reserve raised the central bank's benchmark overnight interest rate to about 3% to 3.25%, to the dismay of investors across the country.
In the aftermath of the Federal Reserve's latest policy decision, the market observed winners and losers in terms of sector performance. While the healthcare sector lagged, falling 0.5%, the materials sector gained 1.7%, becoming leaders in the market in September. In major indexes, the Nasdaq Composite rose by 0.8%, the S&P 500 Index rose 0.7%, and the Dow Jones Industrial Average rose 0.6%. Materials stocks like Air Products & Chemicals, Inc. (NYSE:APD), The Mosaic Company (NYSE:MOS), and BHP Group (NYSE:BHP) are among some of the top names in the sector that have been performing well in comparison to other stocks on the market. Many materials stocks, including several of those listed on our list below, also offer attractive dividends for income investors looking to earn passively.