If the Fed hikes rates, watch the Energy and Materials sectors

Despite being one of the strongest months of the year for stocks historically, the S&P 500 has now tumbled more than 6 percent so far in December.

Stocks tumbled again on Monday and Tuesday – with the S&P falling deeper into correction territory.

But despite the market weakness, the CME Fedwatch Tool still pegs the probability of a rate hike at the next FOMC meeting on Wednesday at over 70 percent.

Over the previous rate hike cycles since 1994, there have been 4 other December rate hikes.

In the week following these hikes, the top-performing sectors have been Energy and Materials.

They gain an average of about 1 percent each time, trading positively in all 4 instances.

To compare, the S&P inches up about a quarter of one percent during these periods.