Stocks To Watch If Interest Rates Start To Fall
Portfolio Pulse from Aaron Bry
As Treasury yields rise, stocks are taking a hit, with the SPDR S&P 500 Trust (NYSE:SPY) trading down more than 1.5%. However, if the Federal Reserve starts cutting interest rates, certain stocks and industries could benefit. These include REITs like Prologis Inc (NYSE:PLD), VICI Properties Inc (NYSE:VICI), Simon Property Group Inc (NYSE:SPG) and Crown Castle Inc (NYSE:CCI), banks like Bank of America Corp (NYSE:BAC), Western Alliance Bancorporation (NYSE:WAL), and JPMorgan Chase & Co (NYSE:JPM), and tech/growth stocks like Upstart Holdings Inc (NASDAQ:UPST), Asana Inc (NASDAQ:ASAN), Shopify Inc (NASDAQ:SHOP) and SoFi Technologies Inc (NASDAQ:SOFI).
October 03, 2023 | 8:17 pm
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POSITIVE IMPACT
Bank of America Corp (NYSE:BAC) could benefit from a drop in interest rates.
Lower interest rates could stimulate economic activity, leading to increased lending and borrowing which would benefit banks like Bank of America Corp.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Upstart Holdings Inc (NASDAQ:UPST) could benefit from lower interest rates.
Lower interest rates could increase demand for personal loans, benefiting companies like Upstart Holdings Inc.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Prologis Inc (NYSE:PLD) is down more than 12% in the last month due to high interest rates.
High interest rates negatively impact REITs like Prologis Inc as they increase the cost of borrowing, which is crucial for their operations.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
SPDR S&P 500 Trust (NYSE:SPY) traded down more than 1.5% due to rising Treasury yields.
Rising Treasury yields often lead to a decrease in stock prices as investors move towards bonds. This is reflected in the SPY's recent performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100