3 Stocks To Watch After Rate Update It was as if equity markets gave a collective sigh of relief yesterday after the Federal Reserve signaled it would begin "aggressive" tapering of its asset purchase program, while also...

It was as if equity markets gave a collective sigh of relief yesterday after the Federal Reserve signaled it would begin "aggressive" tapering of its asset purchase program, while also aiming for three interest rate hikes in 2022. The uncertainty around just how the Fed would react to rising inflation prints had been a dampener on stocks for much of the past few weeks, and for growth stocks the past few months. But with the uncertainty removed for now, there were some strong bids seen immediately across almost all industries. Here are three stocks in particular that jumped on the announcement and could be worth keeping an eye on as we head towards the end of the year.

Advanced Micro Dynamics (NASDAQ: AMD)

Shares of Advanced Micro Dynamics hit an all time high in the last week of November, before dropping as much as 20% through the start of this week. The chipmaker's 53% year on year revenue growth as reported in their Q3 earnings had helped to drive demand for shares that was added to when Facebook (NASDAQ: FB) said they're planning to use AMD chips in their data centers. But still, investors had to watch their shares go through a pretty severe pullback that was only halted on Tuesday of this week.

Since then, they've rallied more than 12% and were up again in Thursday's pre-market session. The news that the Federal Reserve will be purchasing $30 billion less in securities per month going forward and introducing up to three interest rates increases next year seems to have had the opposite effect compared to what one might have expected. Investors should look for shares to continue trending higher towards last month's all time high, and with a bullish MACD crossover on the verge of being confirmed it's fair to expect shares to be trading above $160 by Christmas.

Docusign (NASDAQ: DOCU)

Despite being among the best stocks to own at the onset of the pandemic last year, shares of Docusign have been crushed in recent weeks. Year on year revenue growth of more than 40% in this month's earnings report didn't carry enough weight to outweigh the earnings per share loss of -$0.03. In the face of rising interest rates, companies that are still growth focused and pre-profit are among the most likely to face significant headwinds. The thinking here is that as money becomes more expensive to borrow, a company's expected future growth and profit trajectory begin to flatten, and so shares fall in response. Hence the 45% drop Docusign shares have experienced this month.

But the 4.5% jump seen in those same shares yesterday suggests that a low might have been put in, for now at least. And with the bears unable to bring shares below $130, the momentum has started to swing towards the bulls who'll be keen to see how much of a recovery rally they can spark. The stock's RSI is moving rapidly up from the low teens and, like AMD, the MACD is on the verge of a bullish crossover. The longer term worries remain for Docusign, but that doesn't mean there's not a near term rally on the cards.

Cisco (NASDAQ: CSCO)

For a tech company that had to watch its stock fall 90% as the internet bubble burst in 2000, shares of Cisco have managed to put in a good two decades worth of work in the meantime. Having bottomed out in 2002, they've managed to tack on upwards of 600% through yesterday's jump, which saw them come within a few cents of hitting their highest level since September 2000.

This came despite a rare miss on the company's revenue in last month's earnings report and softer than expected sales guidance. But the 10% gap down in the aftermath of the report's release was almost immediately filled in and shares have been rallying since. A 4% move in yesterday's session looks set to be continued today and Cisco looks good value to be trading comfortably above $60 soon for the first time since Bill Clinton last sat in the Oval Office.