Investing.com -- UBS analysts said in a note that aggressive rate cuts by the Federal Reserve could set the stage for a new stock market bubble. In their recent note, UBS explains that historically, markets have reacted positively in the short term after the first rate cut, gaining an average of 4% over eight months.

U.S. equity futures edged higher Wednesday, while moves in the dollar and the Treasury bond market reflected indecision amongst global investors as to how the Federal Reserve is likely to execute its first rate cut in more than four years later today.

The Federal Reserve is poised to lower interest rates this afternoon by either 25-basis points or 50-basis points, and UBS highlighted 30 S&P stocks that may be in a position to observe noticeable moves.

U.S. futures are trending higher on Wednesday morning as investors keenly await the final decision from the Federal Reserve’s two-day policy