The Federal Reserve (Fed) could cut interest rates in September for the first time in four years, which could have an immediate impact on the stock market.
However, some companies could benefit from the move in the longer term and see sustained growth. In this article, we look at three stocks that analysts believe could benefit significantly from an interest rate cut.
Amazon
Amazon $AMZN is the world's largest online retailer and is among the companies that should benefit significantly from the interest rate cut. When the Fed cuts interest rates, it will affect all other rates, from mortgages to credit cards and car loans. The main reason for lowering rates is to stimulate economic activity by lowering the cost of borrowing money.
For Amazon, this means that consumers will pay less interest on their purchases, which should increase their activity on the platform and thus Amazon's sales. Wall Street experts have set a target price for Amazon stock at $220.
Smaller companies and mid-sized…