Fed hikes again - an AI-Picked insurer is still cashing in

On September 17, 2026, the Federal Reserve's first rate hike since 2023 caused market ripples with the Dow down 1.3%, S&P 500 falling 0.5%, and 10-year Treasury yields rising to around 5%. However, some portfolios remained resilient and even benefited from the new higher-rate regime. Investing.com's AI-powered Strategies models revealed that several portfolios shrugged off the hike entirely, and one holding in the worst-hit group was turning the new regime into a tailwind.

Chubb (NYSE:CB), an insurance company holding, was among the top performers, increasing by 1.13% in the month despite the sector-wide decline. The reason behind Chubb's positive performance lies in its heavy investment in Treasuries, which provides direct income from higher rates. With a market cap of $130.5 billion and a forward P/E near 11.3x, Chubb is currently trading at a discount compared to the market average of 45x.

The AI-powered selection continues to differentiate between rate-sensitive income sources and spenders within the financials sector, highlighting the unique advantages of insurers like Chubb amid rising interest rates.