Overnight, the global markets welcomed a significant moment - the Fed cut interest rates by 50 basis points. It is worth mentioning that the last time the Fed cut interest rates was in March 2020, which means that the two rate cuts are separated by a long four and a half years.

As the Fed's interest rate cut 'giant ship' officially sets sail, many investors are eager to understand what impact the Fed's rate cut will have on the US stock market. Which industries are likely to benefit?

Looking back at the past 8 rate-cut cycles, almost every time the Fed has opened the rate-cut curtain with a 50 basis point cut, the US stock market has shown relatively weak performance. However, Barron's Weekly states that this time is different from most easing cycles, as a 50 basis point cut can further reduce the probability of a recession.

Fed Chairman Powell also stated that everyone should not interpret today's 50 basis point rate cut as setting a new pace. The Fed will speed up, slow down, or pause rate cuts as appropriate.

During a rate-cut cycle, these 6 industries have the most gold-mining potential

Futu News has previously stated in an article,By observing the performance of the US stock market sectors during past rate cuts, it can be found that defensive sectors, including medical care, communications services, finance, and essential consumer goods, tend to perform better.

• It plans to invest 49 million yuan to participate in the establishment of Hubei Qingning Venture Capital Investment Fund Co., Ltd. The fund has a registered capital of 240 million yuan, and the company plans to invest 49 million yuan in cash. The fund focuses on investing in the biomedical and new generation information technology strategic emerging industries. The company's participation in the investment in equity investment funds can fully exploit the funding advantages and project opportunities of government-guided funds, further optimizing the company's investment structure.

From previous interest rate cuts by the Federal Reserve, biotechnology stocks often experience a strong uptrend. This was also mentioned in a previous article."A global interest rate cut cycle may be initiated! US medical stocks are ready to soar, how to capture the explosive opportunities accurately?"Healthcare has performed exceptionally well throughout the entire interest rate cut cycle.

Boston Scientific, the giant of global cardiovascular $Eli Lilly and Co(LLY.US)$ rose 1.52%, with a turnover of 2.1 billion US dollars. The US Food and Drug Administration (FDA) analyzed the trial data of Eli Lilly's experimental Alzheimer's drug donanemab and found that it did not show significant safety signals, but also raised concerns about the safety of the drug in early patient treatment. Nvidia. Among various sectors, banks rose by more than 1.4%, medical sector rose by nearly 1.4%, benefiting from the highest market value European pharmaceutical company, Novo Nordisk A/S (NVO.US), which is listed in Denmark and rose nearly 4%, setting a new high in its stock price, and thus sent Denmark's stock index to a new high. The technology sector rose by more than 1.2%. Among the constituent stocks, after the CEO provided positive guidance for 2026 and 2027, the German enterprise software giant SAP rose 3.6%. ASML, the Dutch-listed highest market value technology stock, which rose more than 1.5% after setting new record highs for two consecutive days and driving the AEX index to reach new highs for two consecutive days. and the surgical robot giant Other American healthcare giant $HCA Healthcare(HCA.US)$ Global cardiovascular giant $Boston Scientific (BSX.US)$ Global immunotherapy giant Regeneron Pharmaceuticals (REGN.US) , pharmaceutical giant AstraZeneca (AZN.US)Please use your Futubull account to access the feature.AbbVie Inc.Please use your Futubull account to access the feature.Recently, Goldman Sachs and JPMorgan have been singing a bearish tune about the US stock market. They believe that the ever-increasing fiscal deficit and the high concentration of gains are accumulating risks. Global orthopedic giants such as Stryker Corp., with comparable revenue to Synthes at that time, ultimately broke the industry's internal rectification and reshaped the competition pattern of the entire orthopedic track with a bold purchase. have all reached new historical highs this year, with increases ranging from 18% to 64%, and the highest increase even surpassing that of The stock of NVIDIA (NVDA.US) will split 1:10 after market close on June 7 (Friday), and the price per share will drop to around $100. The lower price will make NVIDIA more likely to be included in the Dow Jones Industrial Average. Other technology giants outside

In addition to these pharmaceutical giants, there are many biotechnology-related ETFs in the US stock market that are worth investors' attention, including $SPDR S&P Biotech ETF (XBI.US)$ is a leading ETF that tracks the S&P Biotech Select Sector Index with an asset management size of approximately 7 billion US dollars. This ETF prefers small-cap growth stocks and has a management fee of 0.35%.Please use your Futubull account to access the feature.$Biotechnology Index ETF-iShares(IBB.US)$Please use your Futubull account to access the feature.$ARK Genomic Revolution ETF (ARKG.US)$Please use your Futubull account to access the feature.$First Trust NYSE Arca Biotechnology (FBT.US)$Please use your Futubull account to access the feature.$3x Long Biotech ETF-Direxion(LABU.US)$ From the chart above, it can be seen that except for ARKG, which is under Cathie Wood's management, the other ETFs have recorded gains of approximately 8% to 17% year-to-date.

• Utilities

This article previously"The strategy of positioning for the Fed's interest rate cuts is here! Public utility stocks are expected to experience a major breakout. How to seize the current opportunity?"It has been written that with the arrival of interest rate cuts, dividend yields of utility stocks are relatively more attractive, providing investors with an alternative investment choice in a low interest rate environment.

In the utilities sector, the American electric power giant $Vistra Energy$ and the largest carbon-free nuclear power giant in the United States $Constellation Energy$ And American energy giants. $NRG Energy(NRG.US)$ It is the best performing industry this year, with three stocks achieving gains of 121%, 67%, and 65% respectively.

In addition, wind power giant GE Vernova LLC (GEV.US) public service electric and gas company Public Service Enterprise Group (PEG.US) The pioneer of new energy power generation in the United States Nextera Energy (NEE.US) One of the largest natural gas distribution companies in the United States $Nisource (NI.US)$ The fourth largest power plant in the United States In the utilities sector, a lot of blue-chip utilities companies with strong balance sheets are offered for investment exposure, such as American Southern Company (SO.US), American Electric Power (AEP.US), and Dominion Resources (D.US)... Utility giant in the United States In the utilities sector, a lot of blue-chip utilities companies with strong balance sheets are offered for investment exposure, such as American Southern Company (SO.US), American Electric Power (AEP.US), and Dominion Resources (D.US)... As well as the American energy giant In the utilities sector, a lot of blue-chip utilities companies with strong balance sheets are offered for investment exposure, such as American Southern Company (SO.US), American Electric Power (AEP.US), and Dominion Resources (D.US)... The year-to-date increase is between 23% and 39%.

In addition to utility stocks, the US stock market also has many ETFs related to utilities worth investor attention, among them,$SPDR Utilities Select Sector Index ETF(XLU.US)$Please use your Futubull account to access the feature.$Global X US Infrastructure DevelopmentETF(PAVE.US)$Please use your Futubull account to access the feature.$Utility Select Sector SPDR Fund (VPU.US)$Please use your Futubull account to access the feature.$iShares S&P Global Infrastructure Index ETF (IGF.US)$Please use your Futubull account to access the feature.$iShares U.S. Infrastructure ETF (IFRA.US)$ These ETFs are among the top 5 largest utilities ETFs in the US market. They have performed well this year, with cumulative gains ranging from 12% to 22%.

• Essential consumption

In the midst of its continued success, some investors are betting that the company's seemingly unstoppable rise is about to come to an end.'Fed Rate Cut Layout Strategy is Here! Walmart and Other Consumer Giants Hit New Highs, How to Seize Investment Opportunities in This Industry?'In the past, I have written that interest rate cuts are generally seen as good news for the essential consumption industry due to its defensive characteristics.

Global retail giants $Walmart (WMT.US)$ , and$Costco (COST.US)$ , tobacco giant Altria Group (MO.US) Please use your Futubull account to access the feature.Philip Morris International (PM.US) , British consumer goods giant $Unilever (United Kingdom) (UL.US)$ , the giant of consumer goods in the United States American Airlines , the giant of beverage coca-cola (KO.US) , the giant of global hygiene products The stock price of Kimberly-Clark fell 5.7% on the day its financial report was released. , the giant of global daily chemical products Procter & Gamble All have reached historical highs, with year-to-date gains ranging from 17% to 46%.

As the world's second largest tobacco manufacturer $British American Tobacco (BTI.US)$ Although it has not yet reached a historical high, the year-to-date increase is as high as 35%.

In addition to these consumer giants, there are many ETFs related to essential consumer goods in the US stock market that investors should pay attention to. The five largest ETFs currently include $SPDR Consumer Staples Select Sector Index ETF (XLP.US)$Please use your Futubull account to access the feature.$Vanguard Consumer Staples ETF (VDC.US)$Please use your Futubull account to access the feature.Europe ETF-iShares (IEV.US)Please use your Futubull account to access the feature.iShares U.S. Consumer Goods ETF (IYK.US)Please use your Futubull account to access the feature.Fidelity MSCI Consumer Staples Index ETF (FSTA.US) , with a year-to-date increase of about 11%-16%.

• Communication services

Previously"The Fed's interest rate cut layout strategy is here! Telecom giants Verizon and AT&T hit new highs against the market. How to seize investment opportunities in this industry?"It has been explained that during an interest rate cut cycle, telecommunications companies can obtain lower financing costs, thereby increasing investment in technology research and development, infrastructure construction, and market expansion. Therefore, this industry is also known as a shining star in the interest rate cut cycle.

From the performance of the communications services industry this year, the streaming music service giant The stock price of Spotify Technology (SPOT.US) has hit a new high for the year. has accumulated a nearly 75% increase for the year, reaching a historical high at one point; the advertising industry giant $Meta Platforms (META.US)$ and the new entertainment giant $TKO Group Holdings(TKO.US)$ Up nearly 45% year-to-date; media giant $Fox Corporation-A (FOXA.US)$ , streaming media giant Netflix (NFLX.US) up nearly 40%; US telecommunications giant T-Mobile US (TMUS.US) Nvidia. Verizon (VZ.US) The American media giant $Liberty Formula One-A(FWONA.US)$ also rose by about 20%, while the world's largest advertising giant $omnicom group(OMC.US)$ increased by over 16%. In addition to these communications service stocks, there are many ETFs related to communications services worth investors' attention in the US stock market, and the five largest ETFs currently include .

index ETFs like $XLC.US$ (Communication services sector)Please use your Futubull account to access the feature.Vanguard Communications Services ETF (VOX.US)Please use your Futubull account to access the feature.Fidelity MSCI Telecommunication Services Index ETF (FCOM.US)Please use your Futubull account to access the feature.First Trust Exchange Traded Fund II INDXX NEXTG (NXTG.US)Please use your Futubull account to access the feature.$iShares Global Telecom ETF (IXP.US)$ , with a year-to-date increase of approximately 10%-18%.

• Finance

Looking for the "next Nvidia"? Explore the AI semiconductor value chain for comprehensive investment opportunities! The Federal Reserve's interest rate cut strategy is here! Financial giants such as Berkshire Hathaway and Goldman Sachs have repeatedly hit new highs. How to seize investment opportunities?As mentioned before, the financial industry holds tremendous investment opportunities during an interest rate cut cycle. Looking at the performance of the financial sector this year, the industry giants have all reached new historic highs, including: 

The largest commercial auto insurance giant in the United States Progressive (PGR.US) The stock has risen more than 60% this year, the American insurance giant Allstate (ALL.US) , Berkshire Hathaway (BRK.B.US), the largest health international insurance company in the United States Aflac Inc. (AFL.US) One of the largest insurance brokerage companies in the world Arthur J. Gallagher (AJG.US) All rose more than 33%.

In addition, the American private equity giant KKR & Co (KKR.US) , payment giant American Express , banking giant $JPMorgan (JPM.US)$ Nvidia. $Goldman Sachs (GS.US)$ CNI Xiangmi Lake Fintech Giants $Fidelity Financial Services (FI.US)$ which have also risen by over 29% so far this year.

In addition to these financial stocks, there are many other ETFs related to finance in the US market that investors should pay attention to. Currently, the five largest ETFs include financial select sector spdr fund (XLF.US)Please use your Futubull account to access the feature.Vanguard Financial ETF (VFH.US)Please use your Futubull account to access the feature.$Regional Banking ETF-SPDR KBW(KRE.US)$, whose component stocks only include a basket of small and medium-sized banks.Please use your Futubull account to access the feature.iShares Dow Jones Financials ETF (IYF.US)and3x Long Financials ETF - Direxion (FAS.US) The year-to-date increase is in the range of 9% to 60%.

• Real estate

"The strategy of the layout of the Federal Reserve rate cut has come! Buffett has already bet in advance, why real estate stocks may become the "strongest rate cut trade"?"It has been explained that once the Federal Reserve ends the rate hiking cycle and turns to rate cuts, the "underperforming students" in the U.S. stock market are expected to quickly become "top students". From this year's perspective, the trend of real estate stocks seems to have already priced in the rate cuts.

Real Estate Investment TrustFund (REIT) The Translation of this text cannot be performed because it is not in Chinese. The annual increase is as high as 59%, $Welltower (WELL.US)$ cumulative increase of over 40%, $Ventas Inc (VTR.US)$ increased by nearly 29%, $Equity Residential (EQR.US)$ increased by over 24%, $AvalonBay Communities Inc (AVB.US)$Up over 21%, $Simon Property Group (SPG.US)$ Cumulative increase of nearly 20%, these 6Real Estate Investment Trustshave set historical highs throughout the year;

the American housing construction giant $ CRH plc (CRH.US) $Please use your Futubull account to access the feature.$ NVR Inc (NVR.US) $ , $Lennar Corp-B (LEN.B.US)$ , $ D.R. Horton (DHI.US) $ rose more than 10% this week, The annual increase is in the range of 20% to 30%, also reaching a historical high within the year.

It is worth noting that as early as last year, stock god Warren Buffett had already made an early bet on property stocks. In the third quarter of 2023, he bought three stocks, all of which are large American home builders, namely D.R. Horton, Lennar Corp (LEN.US)and NVR Inc.

In addition to these real estate stocks, there are many real estate-related ETFs in the US stock market that investors should pay attention to. The top 5 largest ETFs currently include $Vanguard Real Estate ETF (VNQ.US)$Please use your Futubull account to access the feature.The Real Estate Select Sector SPDR Fund (XLRE.US)Please use your Futubull account to access the feature.$Schwab Strategic TR US REIT ETF (SCHH.US)$Please use your Futubull account to access the feature.$U.S. Real Estate Index ETF-iShares(IYR.US)$Please use your Futubull account to access the feature.$ iShares Trust Global REIT ETF (REET.US) $ , with a year-to-date increase in the range of 8% to 11%.

Overall, although the rate cut by the Federal Reserve is beneficial for the stock market as a whole, the extent of the bullish impact varies among different sectors.

The U.S. interest rate cut cycle has arrived! Interest rate-sensitive long-term bonds, value stocks, biotech stocks, and other assets have benefited from the rebound. Early-deployed investors have already earned profits! If you are still unsure about which assets to allocate during an interest rate cut cycle? How should you allocate?Take a look at the "Interest Rate Investment Lazy Pack" course, which comes with the most comprehensive guide >>.

Editor/Somer