As of September 3, the CME FedWatch Tool puts the odds that the Federal Reserve will cut interest rates in September at 91.7%. This doesn’t mean a rate cut is certain, but it does help investors take the emotion, or our opinions, out of our investment decisions.
Therefore, if rates are likely to move lower, we should ask what sectors will benefit from lower interest rates. Growth stocks, particularly those in the technology sector, will likely be winners. That would add fuel to the artificial intelligence (AI) trade, which doesn’t need much of a catalyst to get investors interested.
