The Federal Reserve officially did it: It raised key interest rates by 0.5% yesterday, which marks the biggest rate increase in 22 years. The central bank also plans to begin shrinking its $9 trillion asset portfolio next month.

Wall Street was nervous ahead of Wednesday’s Federal Reserve Open Market Committee (FOMC) statement. While many expected a 0.5% interest rate hike, there were fears that 0.75% key interest rate increases would be in the cards. Well, Fed Chairman Jerome Powell put Wall Street’s fears to bed during his press conference, stating “A 75-basis-point increase is not something the committee is actively considering.”

He also made clear that he does not anticipate a recession:

“I think we have a good chance to restore price stability without a recession … a severe downturn and without materially higher unemployment … So I see a strong economy now. I see a very strong labor market, for example. Businesses can’t find the people to hire. They can’t find them.”

I would tend to agree after evaluating the ISM services report and manufacturing data for April. Economic activity continued to expand, with a 55.4% reading for the April Manufacturing PMI.

The broader market breathed a huge sigh of relief following Jerome Powell’s comments, with the S&P 500, NASDAQ Composite and Dow Jones Industrial Average surging 3%, 3.2% and 2.8%, respectively.

Now, I should note that this was a short-covering rally, but it’s still significant because the S&P 500 did effectively retest its March 14 lows last Friday. So, it’s important that the index bounced off its lows.

So, what do I expect following yesterday’s stunning rally?

First, we’ll likely see some back-and-filling, which is what the markets are experiencing today. However, looking further out into May, I anticipate a series of relief rallies where major stock indices find a firmer footing. In addition, companies that post strong earnings and sales results and guide higher should emerge as the market leaders — which are exactly the stocks my Breakthrough Stocks Portfolio is chock-full of.

My average Breakthrough Stock is forecasted to post 62.3% annual sales growth and 206.7% annual earnings growth. Despite ongoing fears of a recession brewing, I am still expecting my companies to post wave after wave of better-than-expected sales and earnings announcements.

In fact, last week I had 11 Breakthrough Stocks announce results over the past week — and every single one of them exceeded analysts’ expectations. This week, I have 20 Breakthrough Stocks companies on tap to release results from their most recent quarter.

And so far, so good. As of this writing, 16 Breakthrough Stocks companies have announced their earnings, and the majority have smashed analysts’ earnings estimates. Many have also firmed up in the wake of their positive earnings results and/or staged big rallies.

Case in point: Atkore (NYSE:ATKR)

Atkore is a leading manufacturer of galvanized steel tubing and pipe products, including electrical conduits, flexible sprinkler pipe and light gauge steel tubes. The company has benefitted from higher copper prices, which was evident in its latest earnings report.

On Tuesday, Atkore surged more than 12% after posting exceptional results for its second quarter in fiscal year 2022. Second-quarter sales jumped 53.6% year-over-year to $982.6 million, besting estimates for $800.9 million. Atkore also achieved second-quarter earnings of $233.5 million, or 86.9% year-over-year earnings growth. Adjusted earnings per share surged 93.2% year-over-year to $5.39, up from $2.79 per share in the second quarter of 2021. Analysts were expecting earnings of $3.75 per share, so Atkore posted a 43.7% earnings surprise.

Atkore also increased its outlook for its fiscal year 2022. The company expects full-year sales to grow between 25% and 30% and to achieve adjusted earnings per share between $19.65 and $20.45. The new outlook is well above analysts’ current projections for full-year adjusted earnings of $13.44 per share.

Or take semiconductor company Silicon Motion Technology (NASDAQ:SIMO), which was also a big earnings winner this week. It rallied more than 17% to a new 52-week high today, while the broader market sold off. Silicon Motion Technology shares jumped after crushing analysts’ earnings estimates and news that fellow Breakthrough Stocks company MaxLinear (NASDAQ:MXL) plans to acquire Silicon Motion Technology.

First, for the first quarter, Silicon Motion Technology reported earnings of $1.72 per ADS and total sales of $242 million. That compared to earnings of $1.11 per ADS and sales of $182.4 million in the first quarter of 2021. The consensus estimate called for earnings of $1.53 per ADS on sales of $235.92 million, so SIMO posted a 12.4% earnings surprise and a slight sales surprise.

Second, MaxLinear revealed its plans to purchase Silicon Motion Technology for $3.8 billion, which translates to about $114.34 per ADS. The deal is anticipated to close in the first half of 2023, and it would create an $8.0 billion company.

The bottom lines: Earnings are working for my Breakthrough Stocks, and I fully expect them to continue to do so.

I’ll explain why in tomorrow’s Breakthrough Stocks Monthly Issue for May. I’ll also explain why my Breakthrough Stocks are an oasis in the current market environment and why I expect a big rebound in my Breakthrough Stocks in the upcoming months. Plus, I’ll reveal three exciting new buys, as well as my latest Top 5 Stocks list.

So, join me at Breakthrough Stocks today so you can act on my new recommendations as soon as they’re released.

P.S. On Tuesday, my InvestorPlace colleague Luke Lango called for an urgent briefing — Divergence 2022 — in order to show folks how to prepare for what could be the biggest wealth-building opportunity of the century. I was fortunate enough to be able to join Luke by patching in from my Florida home. Luke calls this opportunity the “Divergence Window,” and he says these once-a-decade events are able to produce massive gains on the back of market volatility.

In fact, these “Divergence Windows” are when I’ve locked in some of my best gains, too. Also during the briefing, Luke revealed his top pick to play the emerging Divergence Window of 2022 for the shot at up to 1,000% gains within the next 12 months. If you missed the event, you can click here to watch the 1,000% Divergence Window Official Broadcast.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: