Wall Street Is Bracing for the Fed's Next Move on Rates. These 3 Stocks Win Either Way.
2026-10-03 23:15
•Reuben Gregg Brewer •The Motley Fool
•••••• ••• Axe Cap view
Fed Rate Moves: Which Stocks Hold Up Here and There
Three US healthcare giants offer stability as the Fed weighs its next interest rate step.
The Fed's next rate decision has Wall Street on edge, but some stocks don’t suffer the same anxiety. US healthcare giants like Eli Lilly, Medtronic, and Johnson & Johnson hold up well through interest rate hikes. Their strong cash flows, especially from products like Lilly’s GLP-1 weight loss drugs, and diversified pipelines act as buffers. Medtronic’s turnaround and steady dividend growth appeal to investors seeking reliability. Johnson & Johnson, a Dividend King with decades of steady payouts, shows resilience across pharma and devices. Why look at US stocks? Because South African healthcare names don’t provide the same global scale or cash flow certainty. Instead, consider the rand’s reaction: USD/ZAR tends to soften when the Fed hints at pause, which benefits domestic consumer-focused counters. But if inflation surprises, all bets are off, with possible renewed pressure on the rand and local banks. this is just our opinion and not financial advice
Buy Eli Lilly and Medtronic for steady income and growth. Watch the rand and local banks like Standard Bank closely for opportunities if the Fed pauses or the ZAR strengthens.
- LLY
- MDT
- USD/ZAR
- Fed surprises with bigger hikes
- Rand weakens further on global risk aversion
6/10
As Wall Street anticipates potential Fed rate hikes, healthcare stocks are positioned to weather economic uncertainty better than other sectors. Three healthcare companies—Eli Lilly, Medtronic, and Johnson & Johnson—are highlighted as resilient investments due to their strong fundamentals, diversified portfolios, and proven ability to generate growth regardless of interest rate environment.
Our take is based on reporting first published by The Motley Fool.