The Federal Reserve raised interest rates by 25 basis points on Wednesday, marking the central bank's first increase since 2023. Fed Chair Kevin Warsh, in a unanimous decision, moved the benchmark rate to 3.75%–4.00%, warning that inflation remains "too high." Projections point to one additional hike this year, with a December increase fully priced and an October move at roughly 50% probability.
Wall Street initially erased intraday gains of up to 0.9%, with the Dow falling 1.2% and the S&P 500 dropping 0.4%. Overnight Asian trading saw futures recover, with S&P 500 futures rising 0.7% and Nasdaq futures gaining 0.6%.
Despite the hawkish tone, an AI-driven stock selection model that launched in November 2023 has generated a total return of 189.92%, outpacing the S&P 500 by 111.63 percentage points. Several picks flagged by the models continue to post strong gains.
Delek US Holdings (NYSE: DK), flagged in March, has surged 111.06% since selection. The company crushed Q2 earnings per share estimates with $5.48 versus $2.21 expected, and its Q4 2025 adjusted EPS of $2.31 beat analyst forecasts of -$0.07—a 3,400% surprise. Adjusted EBITDA swung from a -$15 million loss to nearly $375 million year-over-year. An enterprise optimization plan targets at least $200 million in annual savings, while the logistics arm is guiding for $520–$560 million in 2026 earnings. Analyst price targets average around $40, with some reaching $53.
Everforth (NYSE: EFOR), selected in July, has climbed 84.68% since being flagged. The stock trades near $18, down roughly 63% year-to-date and at about 29% of its 52-week high, with an adjusted P/E near 6x and a price below half its book value. Management guidance targets $5.74 in EPS by 2027, implying roughly 3x forward earnings. The company reported quarterly revenue above $1.007 billion, adjusted EBITDA of $96.7 million, and free cash flow of $46.3 million. It also completed a $77.5 million share buyback removing over 1.79 million shares and secured a $115 million U.S. Army AI research contract. Wall Street targets point to $29, with independent fair-value models at $31, suggesting 65%–70% upside.
Other AI-picked stocks posted notable gains in September: CVR Energy (NYSE: CVI) rose 23.75%, Inspire Medical Systems (NYSE: INSP) gained 18.25%, Alphatec (NASDAQ: ATEC) advanced 14.01%, Intel (NASDAQ: INTC) climbed 13.58%, and CommVault (NASDAQ: CVLT) rose 12.39%. Since their respective selections, Consensus Cloud Solutions (NASDAQ: CCSI) has gained 71.44%, Nucor (NYSE: NUE) 63.72%, and HF Sinclair (NYSE: DINO) 61.95%.
