In fact, futures contracts linked to the Fed's interest rate policy show that the money market currently expects the Fed to raise interest rates by 25 basis points as early as June 2022.

US President Biden earlier this week nominated Powell as chairman of the Federal Reserve, and another candidate Brainard was appointed vice chairman of the Federal Reserve. The news boosted expectations for the Fed to raise interest rates next year, and the Fed will also end its bond purchase plan.

In fact, futures contracts linked to the Fed's interest rate policy show that the money market currently expects the Fed to raise interest rates by 25 basis points as early as June 2022.

(Federal Interest Rate Detection Tool, from Investing.com)

In this context, we will focus on the three of them perform well this year, and will "go to the next level" during the Fed's tightening process Companies:

1, Morgan Stanley

stock price performance so far this year: up 48.6% Total market value: US$182.8 billion

Morgan Stanley performed well this year. Benefiting from the economic recovery, active investment banking business, booming IPO market and narrowing exposure to credit losses, the stock price of this New York-based large investment bank has risen by nearly 49% this year, far exceeding the comparable returns of Dow Jones Index and S&P 500 Index .

Morgan Stanley's stock price closed at $101.86 on Tuesday, not far from the all-time high of $105.95 set on September 28. At current levels, the market value of the investment banking giant, which manages a total assets of $1.1 trillion, is about $182.8 billion.

(MS daily chart from Yingwei Finance IInvesting.com)

As more and more people bet that interest rates will rise next year, when buying in 2022, Morgan Stanley's stock seems to have become a reliable investment. Higher interest rates and yields tend to increase the net interest margin that banks receive from loans —that is, the difference between the interest income generated by the bank and the amount of interest paid to depositors.

On October 14, Morgan Stanley released its third-quarter performance report, with data exceeding market analysts' expectations, thanks to its strong investment banking business and record asset management expenses.

More importantly, in recent months, the Wall Street giant has stepped up efforts to return more cash to shareholders by increasing dividends and stock buybacks.

You can also pay attention to: JP Morgan (NYSE:JPM), Bank of New York Mellon (NYSE:BK), and Zion Bank (NASDAQ:ZION).

2, Nasdaq

Shared price performance so far this year: up 56.6% Total market value: US$34.8 billion

Nasdaq's stock price has risen by nearly 57% this year. As investors expect interest rates to rise in 2022, Nasdaq's stock price is expected to appreciate further in the next few months.

As one of the world's leading stock exchange operators, Nasdaq owns Nasdaq Stock Exchange , and the financial services company also owns Philadelphia and Boston Stock Exchanges, as well as seven exchanges in Europe.

Nasdaq can produce stable returns whether in a market environment with high or low interest rates. Rising interest rates are considered to be detrimental to many of the high-growth tech stocks listed on their exchanges, which could lead to increased trading activity and incur higher fees.

(NDAQ daily chart from Yingwei Finance IInvesting.com)

Nasdaq shares hit an all-time high of $214.96 on November 5, closing at $207.91 on Tuesday, bringing the New York-based multinational company's market value to $34.8 billion.

Nasdaq reported impressive third-quarter results on October 20, with earnings and revenue exceeding expectations due to surge in IPOs and strong demand for its services. In the July-September quarter, the exchange operator welcomed 147 new listed companies, including popular stocks Robinhood Markets (HOOD), Duolingo (DUOL) and Freshworks (FRSH).

Nasdaq has been committed to diversifying its business, and after acquiring Verafin for $2.75 billion earlier this year, the company has become a major role in the anti-financial crime software field, which bodes well for the company's future. Moreover, the company also provides a cloud-based market service platform to provide infrastructure for the market.

You can also pay attention to: S&P Global (NYSE:SPGI), Chicago Mercantile Exchange Group (NASDAQ:CME), InterContinental Exchange (NYSE:ICE).

3, Apple

stock price performance so far this year: up 21.6% Total market value: US$2.65 trillion

In recent weeks, Apple (NASDAQ:AAPL) stock price has soared, setting record highs because the market is looking forward to the electric car that the technology giant will develop on its own, and the demand for the company's flagship model iPhone 13 has set a record.

Apple shares hit a new high of $165.70 on Monday, up about 22% year-to-date and closed at $161.41 on Tuesday. At current levels, the tech giant based in , California, Cupertino has a market value of $2.65 trillion, making it the company with the highest market value on US Stock Exchange .

(AAPL daily chart comes from Yingwei Finance IInvesting.com)

Although Apple is widely defined as growth stock , this consumer electronics conglomerate is not as easily affected by the rate hike process as other technology companies because its profit model is reliable. Apple's annual revenue in fiscal year 2021 increased by 33% year-on-year to US$366 billion, and its cash reserves also reached US$191 billion. With that in mind, Apple will still benefit in the coming months even as traders ramp up their bets on U.S. interest rate hikes next year.

However, it should be noted that Apple's revenue in the fourth quarter was lower than expected, but its revenue was consistent with expectations. Apple CEO Cook blamed Apple's supply chain problems for the decline in sales, which he warned would lead to production restrictions on iPhone, iPad and Mac computers.

Nevertheless, Apple predicts that the crucial December holiday sales season will be the largest in the company's history amid strong growth in its services business, including sales from the App Store, music and video subscription services, extended warranty, authorization and advertising.

You can also follow: Amazon (NASDAQ:AMZN), Google A (NASDAQ:GOOGL), Netflix (NASDAQ:NFLX).