The US Federal Reserve (Fed) defined a Interest rates cut this Wednesday and investors are already preparing to buy cedars that benefit of monetary flexibility. Here are some Expert recommendations.
The Federal Reserve cut the rates
The Federal Reserve announced a Top of a quarter cordin a context in which the data suggests a cooling greater than the one provided in the labor market. According to a Bloomberg survey, most analysts project at least one or two additional rate cuts throughout 2025.
The decision comes in a growing political pressure. President Donald Trump sought to strengthen his influence on the Central Bank, which revives fears on the independence of the Fed. For months, the president demanded Jerome Powell apply more aggressive reductions of interest rates and, in parallel, he advanced with changes in the composition of the Governor Board.
In August, Trump fired Governor Lisa Cook, although the official continues in office while a judicial litigation is resolved. At the same time, the White House accelerated Stephen’s designation to cover a key vacancy, with the Senate confirmation just before the September monetary policy meeting.
What yields to the drop in fees
In this context, the strategists of Criteria They stressed that there is value in companies beyond the famous seven magnificent.
Specifically, they mentioned the case of Booking Holdings (BKNG)which presented solid financial results in the second quarter, with income and profits growing 16% and 32%, respectively.
“With a solid cash flow and strong cash position, the company projects a strong growth and sales growth in 2025. In addition, the firm highlighted the progress of Connected Trip, where the transactions that combine more than one travel service already represent a low -dual -digit participation in Booking.com and grew more than 30% intensual,” said the specialists.
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Subsequently, they talked about Cisco Systems (CSCO)company that closed its fiscal year 2025 with income and benefits increasing 8% and 14%, respectively.
“Artificial intelligence infrastructure orders (AI) exceeded US $ 2,000 million in the year, and the company projects revenues of up to US $ 60,000 million and earnings per share of up to US $ 4.06 by 2026,” they said.
Technology and innovation
For their part, experts of Capital Guardian They identified three key areas to take advantage of a rate cut by the Federal Reserve.
First, they talked about companies mainly of the technological sector, which are not necessarily industrial or financial traditional, mainly signatures at the AI avant -garde, such as NVIDIA (NVDA), Alphabet (Googl), Oracle (ORCL), Broadcom (AVGO), Microsoft (MSFT) and Meta Platforms (Meta).
Then, they indicated that they see potential in Cedears linked to cryptocurrencies. “As for cryptoactive, Wall Street will start using blockchain technology to improve infrastructure, transparency and resilience. Companies such as Robinhood (Hood) tokenize actions with technology Ethereum (Etha)allowing operations 24/7 and greater accessibility. Bitcoin (ibit) In turn, it begins to consolidate as a value reserve asset. The combination of lower rates, technological innovation and adoption of blockchain promises opportunity, “they explained.
And they finished: “Las Small Caps (IWM) They benefit from more competitive rates, because being companies with less stock market capitalization and young businesses, require financing and access to credit to continue tractioning. Some companies in the financial sector benefit because they revive their loan market, and decrease the Moors. Here we highlight those roles that are integrating a lot of technology in their infrastructure, such as JP Morgan (JPM) and Goldman Sachs (GS)“
Source: Ambito
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