These are the stocks that do best immediately after the first Fed rate cut of a cycle

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The top 10 stocks that perform the best three months after an initial cut include a megacap name and some big retailers.

The Federal Reserve is expected to make its first rate cut in just a few short hours, so

Pro took a look at what stocks historically do best immediately after the start of an easing cycle. The S & P 500 and the Dow Jones Industrial Average posted all-time highs during Tuesday's session as traders prepared for the Fed's decision, but both indexes ended the day near the flatline. The Fed's decision to cut interest rates — whether it's by a quarter- or half-percentage point — has the potential to bolster several individual names, if history is any indication.

Pro searched for the stocks set to gain the most following a Fed rate cut, using data from prior easing cycles going back to 1984. Here is what we used for criteria: S & P 500 member Highest median performance three months after an initial cut These are the top 10 names we came up with. Apple is the only megacap tech stock to surface on this list.

 

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