Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate Hike

The Federal Reserve raised its benchmark rate by 25 basis points on Sept. 16, reversing earlier expectations for 2026 rate cuts amid persistent inflation.

Brokers and exchanges such as Interactive Brokers, Robinhood, and CME Group can benefit more than banks from rate hikes through faster-repricing net interest income and hedging demand.

Interactive Brokers appears most directly tied to rate gains, while Robinhood's outlook depends on trading volume and CME Group benefits from ongoing rate path uncertainty.

What a difference a year makes. In fall 2025, markets expected 2026 to bring rate cuts. The Trump administration’s tariffs had been muted, the job market was shaky, and disinflation was the presumed economic outcome. But much like the calls for a recession in 2023, the real world has a funny way of making prognosticators look foolish.

The Federal Reserve raised rates for the first time in three years on Sept. 16, moving the benchmark overnight rate up 25 basis points (bps). The vote was unanimous, and many Fed officials see room for more hikes before year-end. The immediate market reaction was a sell-off, but the following day stocks surged despite prospects of further hikes in 2026 (and 2027).

A new hiking cycle is usually good news for the financial sector , and many investors will screen for banks that benefit most in that environment. However, banks aren’t the only businesses in finance, and many brokers and exchanges stand to reap rewards from rising short-term rates.

The rate path flipped on its head in less than 12 months due to persistent energy-driven inflation. Stoked by the war in Iran and subsequent closure of the Strait of Hormuz, WTI crude futures soared from under $60 per barrel in January to over $105 by September. And with no exit ramp in sight, the interest rate path remains murky and influenced by factors far beyond the Fed’s control .

The market typically views rate hikes as foul-tasting medicine; a needed remedy that goes down bitter. Higher rates mean that lenders can charge more for loans, but they also need to fight to keep deposits. Brokers and exchanges often benefit more than banks during rate hike cycles due to three factors: Net interest income (NII) on cash sweeps and margin loans Customers holding more cash for higher yields and less speculative trading Demand for hedging products Unlike banks, brokers and exchanges have no long-duration loan book and don’t need to worry about deposit beta . Customer cash spreads and margin loans reprice far more quickly in these cycles than typical banking activity, and the three companies listed below each offer a different way to profit in this environment.

Interactive Brokers Group Inc. NASDAQ: IBKR might be the most immediate beneficiary of a 25 bps hike, but you don’t need to take my word for it. During the conference call for the company’s fiscal Q2 2026 earnings report on July 21, CFO Paul Brody estimated that a 25 bps hike would add $81 million in annual NII. In Q2, NII rose 23% to $1.06 billion, so adding $81 million to an annualized NII figure of $4.2 billion means about a 2% lift for every 25 bps. NII also represented more than 56% of total Q2 revenue, so the rate story very much dominates this stock. Interactive Brokers grew NII through the earlier part of the year thanks to expanding account balances, so this r...