×
Kensho Stats

Here's what did well after the Fed hiked at the same time last year

Oil workers using chain to position drill on drilling platform.
Tyler Stableford | Getty Images
Oil workers using chain to position drill on drilling platform.

The Federal Reserve is widely expected to hike interest rates Wednesday with the CME FedWatch tool showing a 98 percent probability for a raise.

Using hedge fund analytics tool Kensho, CNBC PRO screened for how financial market assets and stock sectors performed after the Fed hiked at virtually the same time (Dec. 16) last year.

Here's what did well from the rate move through year-end:



WTI oil and the U.S. dollar rose into year-end in 2015, while the S&P 500 and gold fell. Crude was the best performer with a 4.3 percent return.


The only sector to show a positive return was utilities. On the flip side, energy, consumer and technology declined the most.

To be sure, the financial conditions and the economic outlook after the election are not the same as 12 months ago, which may lead to varying market reactions this time.

"The Fed hiked into a deteriorating credit environment last year — high-yield spreads were at multiyear highs 12 month ago and liquidity conditions were weakening. It's a different story today with credit supportive ... and commodities stable," Strategas Research Partners' Chris Verrone wrote in a note to clients Wednesday.

"Large market leadership remains risk seeking and participation has broadened out (certainly compared to last year)."


Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.