These consumer stocks may get a boost from Fed cut, says Evercore ISI

Consumer stocks are poised to benefit from the Federal Reserve's expected rate cut next week, leading Evercore ISI to recommend investors buy shares of some consumer-facing companies that are trading at a discount after underperforming this year. Historically, consumer staples and consumer discretionary stocks have been "standout outperformers" after the central bank starts lowering, or resumes a cycle of interest rate reductions, Evercore analysts said in a note to clients last weekend. Interest rate futures prices suggest about a 90% probability that the Fed will cut rates another quarter percentage point, to 3.50%-3.75%, at its last meeting of the year next week, the CME FedWatch tool shows. The Fed also eased policy in September and October, after three reductions in late 2024. "While