New York (AP) — Interest rates could soon rise in the U.S. for the first time in almost a decade, and that's shaking up financial markets.

Why all the anticipation? The Federal Reserve has held its benchmark rate close to zero since December 2008 to encourage borrowing and spending, and it's been even longer since the Fed actually raised the cost of borrowing. The central bank last lifted rates in June 2006, the final hike in a two-year series of increases.

The Fed holds a policy meeting Tuesday. After a strong run of job growth in the U.S., investors will be watching closely for any insight into whether the central bank is considering raising rates. That's a move that some analysts say could happen as early as June.

But investors aren't waiting for the Fed. They're already favoring stocks they think will do well under an improving economy — and the higher rates that come with it. They're also steering away from investments they think will suffer.

Stocks of retailers and other companies that depend heavily on consumers are likely to keep rising as hiring expands, for example. But utilities and other high-dividend stocks are bound to languish as investors turn to bonds, which also pay steady income but carry less risk.

To be sure, any move by the Fed to lift rates is a vote of confidence in the U.S. economy. Higher rates are meant to combat inflation, which typically happens when wages and prices are rising as the job market improves.

Russ Koesterich, chief investment strategist at Blackrock, the money manager, says investors should expect "bigger drops and bigger swings" in the market as people scramble to adjust their portfolios after six years of near-zero rates. "This is going to be a change in the environment."