How Sectors Perform After the First Fed Rate Cut in History?

As the Federal Reserve prepares to cut interest rates, various sectors will be impacted to varying degrees. Which sectors of the U.S. stock market are poised to benefit the most, and which are likely to face challenges? 

Historically, during the initial phases of Fed rate-cutting cycles, non-cyclical consumer sectors have shown strong performance following the first rate cut, especially during economic downturns, due to stable demand for essential goods. On the other hand, the financial sector tends to underperform, as rate cuts often signal a slowing economy, exerting pressure on loan growth, credit losses, and default risks.