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

Watch the Energy and Materials sectors if the Fed hikes rates

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.