The most attractive sectors in the United States amid high interest rates are large-cap technology companies, the communications sector, healthcare, and non-cyclical consumer goods manufacturers, Freedom Broker analysts believe. At the same time, within each area investors should choose companies with resilient cash flows and high margins.
The technology sector retains leadership
Freedom Broker analysts continue to view the technology sector positively even in a high interest-rate environment. In addition, the sector benefits from the development of artificial intelligence, Freedom Broker analysts noted.
Experts point out that technology companies’ profits continue to grow at the fastest pace and are likely to remain in the lead next year. This refers to the “Magnificent Seven”: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Nvidia (NVDA), Tesla (TSLA), and Meta (META).
For example, Nvidia’s net income for Q2 of fiscal 2027 increased by 126% year over year to $59.7 billion amid strong demand for artificial intelligence infrastructure. Microsoft’s net income for fiscal 2026 rose by 31% to $133.7 billion. Experts say investors should be more cautious with small and mid-cap companies with low margins, no profits, and reliance on cash inflows far in the future.
Communications, healthcare, and consumer staples
Analysts rate the communications sector positively, which includes major technology platforms, including Alphabet and Meta. In early September, Freedom experts set a target price for Alphabet at around $400 over a two-month horizon, implying upside of about 18.2%.
The financial sector received a neutral or moderately positive assessment. Its outlook will vary depending on the specific industry and company. In July, Freedom analysts already increased the weighting of healthcare in their model portfolio—specifically, in drugmaker Eli Lilly (LLY), which produces treatments for diabetes, oncology, mental disorders, and cardiovascular diseases, and in the exchange-traded fund ETF Health Care Select Sector SPDR Fund (XLV). The fund tracks the performance of the Health Care Select Sector index, which includes healthcare companies and is also represented within the S&P 500.
Artificial intelligence supports certain industrial companies
The industrial sector overall remains sensitive to financing costs and may face pressure, experts emphasize. However, certain segments are being supported by the buildout of artificial intelligence infrastructure.
This refers to companies that assemble servers, supply power equipment, or build sites for data centers—for example, Applied Digital (APLD) and Core Scientific (CORZ). Freedom Broker analysts view the AI infrastructure theme positively, although recommendations for individual companies vary.
Cyclical industries remain vulnerable
Freedom Broker analysts take a more cautious view of cyclical industries, including homebuilding, durable goods, home goods, and home-improvement retail. These segments are particularly sensitive to interest rates and the cost of borrowing.
It is not necessary to exit such assets entirely, but investors should reduce overly large positions or be “as selective as possible,” the analysts noted.
This is not an individual investment recommendation.