Banks, insurers, and brokerages stand to benefit when interest rates remain elevated. Big banks like JPMorgan Chase, Wells Fargo, and Bank of America can see their net interest margins widen as the gap between deposit costs and loan yields grows. Brokerages such as LPL Financial Holdings and Charles Schwab earn more on client cash held in short-term securities that are sensitive to rate moves. Insurance companies including Berkshire Hathaway and Allstate can invest premiums into higher-yielding bonds, boosting portfolio returns. Futures markets now price a 63% chance of a Fed rate hike in September, with an 80% probability that the benchmark rate will be higher a year from now.
The Allstate Corporation
Bank of America Corp
Wells Fargo & Company
JPMorgan Chase & Co
LPL Financial Holdings Inc
Charles Schwab Corp
Berkshire Hathaway Inc