Stocks Rally on Potential Federal Reserve Rate Cut: IAC, Kforce, ICF International, Plexus, and Huron Trade Up

Several stocks, including IAC, Kforce, ICF International, Plexus, and Huron, traded up after the Federal Reserve hinted at a potential interest rate cut in September, fueled by a consumer price index report showing easing inflation. Treasury Secretary Scott Bessent advocated for a significant 50-basis-point rate cut, which could boost rate-sensitive sectors like Business Services. The stocks jumped 4.3%, 4%, 4.4%, 3.1%, and 3.1%, respectively.

Several rate-sensitive stocks, including IAC, Kforce, ICF International, Plexus, and Huron, traded up on Tuesday, July 2, 2025, after the Federal Reserve hinted at a potential interest rate cut in September. The market optimism was fueled by a consumer price index report showing easing inflation and comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut [2].

The consumer price index (CPI) report indicated that inflation had eased, rising by 2.7 percent over the 12-month period ending in July, up from 2.5 percent in June [1]. This report suggested that the Federal Reserve might consider lowering interest rates to stimulate economic growth.

Treasury Secretary Scott Bessent, in an interview with Fox Business, stated that the Federal Reserve "could have cut in June if given accurate data" [2]. He also emphasized the need for the Fed to consider a 50 basis point rate cut in September, which could boost sectors like Business Services by reducing borrowing costs.

The positive market reaction was evident in the stock price movements. IAC, a digital media and entertainment company, jumped 4.3 percent. Kforce, a professional staffing company, rose 4 percent. ICF International, a management consulting firm, gained 4.4 percent. Plexus, a technology solutions provider, increased 3.1 percent, and Huron, a professional services firm, also saw a 3.1 percent rise.

The Federal Reserve's hint at a potential rate cut and the Treasury Secretary's advocacy for a significant cut have led to optimism in the market. However, investors should remain cautious, as the actual decision by the Federal Reserve remains uncertain. The Fed aims to keep inflation below 2 percent and does not typically lower rates when inflation is above that figure [1].

References:

[1] https://www.aljazeera.com/news/2025/8/12/trump-threatens-major-lawsuit-against-federal-reserve-chief-jerome-powell
[2] https://finance.yahoo.com/news/dxc-grid-dynamics-par-technology-205047112.html