Fed Hike Spurs Expectations: Two Stocks Built to Thrive

The Federal Reserve raised its benchmark overnight federal funds rate by a quarter point to 3.75% to 4%, marking the first time in three years that the Federal Open Market Committee (FOMC) has increased rates.

This move was met with expectations of at least one more rate hike this year and potentially two, as indicated by CME Group's FedWatch tool.

The FOMC's recent dot plot from its September meeting shows that most members of the committee don't expect rate cuts until at least 2028.

In an elevated-rate environment, some stocks are better positioned than others to perform well. Two such companies are Visa (NYSE: V) and Wells Fargo.