Upstart’s lending activity is set to accelerate, while Robinhood’s customers are expected to trade more stocks, options, and cryptocurrencies. S&P Global’s credit rating business will grow as companies issue more debt again. The Federal Reserve cut its benchmark rate by 25 basis points, with two more cuts expected by year-end. Lower rates may drive investors towards growth stocks or higher-yielding dividend stocks. Lower interest rates can be a double-edged sword for financial stocks, impacting lending activity and net interest income. However, companies like Upstart, Robinhood, and S&P Global could thrive as interest rates decline. Upstart leverages AI to approve a wider range of loans, benefiting from lower interest rates driving loan applications and boosting revenues. Analysts expect Upstart’s revenue and earnings to grow significantly as interest rates decline and the company automates more loans. Robinhood generates revenue from payment for order flow and net interest income, with lower rates potentially reducing net interest income but boosting trading volumes. Analysts forecast revenue and earnings growth for Robinhood as lower rates draw more investors to the market. S&P Global provides financial data, credit ratings, and analytics services, with its revenue and earnings expected to grow as interest rates decline. The company is considered an evergreen stock and offers exposure to the upcoming interest rate cuts.

Read more at Yahoo Finance: 3 Financial Stocks That Could Soar After the Fed’s Interest Rate Cut