On the other hand, yield-generating assets popped as the Fed maintains lower rates. For instance, on Wednesday, the Vanguard Dividend Appreciation ETF (NYSEArca: VIG) rose 0.4%, Vanguard REIT ETF (NYSEArca: VNQ) gained 0.9% and Utilities Select Sector SPDR (NYSEArca: XLU) increased 1.0%. Dividend-generating assets were among the best performing areas of the market as a prolonged period of low interest rates typically make relatively riskier equities attractive to more conservative fixed-income assets.
Additionally, the weakening dollar helped bolster commodity assets, with the broad PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) 1.6% higher on Wednesday.
The SPDR Gold Shares (NYSEArca: GLD) advanced 1.5%. Gold assets would typically weaken on rate hikes since investors would shift away from non-yield-generating assets like gold, especially on a stronger dollar and lower inflation outlook.
The United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, also pushed higher, rising 4.9% Wednesday on the weaker dollar.