These Stocks to Buy Will Benefit From a Fed Rate Cut... Including This 1 Surprise Tech Stock Yielding 3%

Group 1: Federal Reserve Rate Cut - The Federal Reserve lowered rates by 25 basis points on September 17, marking the first rate cut in 2025, with an expectation of an additional 50-basis-point cut this year [1] - The rate cut occurred despite inflation remaining above the Fed's 2% target, with the core Personal Consumption Expenditures (PCE) inflation projection for 2025 maintained at 3.1% and the 2026 forecast raised from 2.4% to 2.6% [2] - The Fed raised its growth forecast, expecting the U.S. economy to expand by 1.6% in 2025 and 1.8% in 2026, both 20 basis points higher than previous forecasts [4] Group 2: Impact on Industries - Rate cuts are generally positive for interest-sensitive sectors such as automotive and housing, as lower interest rates can boost demand; however, the housing market is currently facing challenges [6] - Consumer discretionary companies, retailers, and e-commerce firms like Amazon (AMZN) are expected to benefit from rate cuts, as they can stimulate consumer spending [7] - Companies with significant debt burdens will see reduced interest expenses, enhancing profitability, while buy-now-pay-later (BNPL) companies like Affirm (AFRM) will also benefit from lower borrowing costs [7]