Stocks Surge Amid Fed Rate Cut Hopes: Vestis, MillerKnoll, Cogent, Cognex, Concentrix Soar

Shares of Vestis, MillerKnoll, Cogent, Cognex, and Concentrix jumped in the afternoon session due to investor optimism for a potential Federal Reserve interest rate cut in September. The stocks rose as the prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services.

In the afternoon session of July 2, 2025, several stocks surged on investor optimism for a potential Federal Reserve interest rate cut in September. The rally was fueled by a recent consumer price index report indicating easing inflation, alongside public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. This prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, encouraging companies to increase spending on consulting, IT projects, and staffing.

Among the stocks that saw significant gains were Industrial & Environmental Services company Vestis (NYSE:VSTS), which jumped 6.6%; Office & Commercial Furniture company MillerKnoll (NASDAQ:MLKN), up 3.8%; Terrestrial Telecommunication Services company Cogent (NASDAQ:CCOI), up 3.3%; Specialized Technology company Cognex (NASDAQ:CGNX), up 4.4%; and Business Process Outsourcing & Consulting company Concentrix (NASDAQ:CNXC), up 5%.

Vestis, which has seen 25 moves greater than 5% over the last year, saw its shares rise due to market optimism, although the move was not considered significant enough to change the market's fundamental perception of the business. The company reported disappointing third-quarter fiscal 2025 results, missing analyst expectations on both profit and revenue, leading to a 7.4% drop seven days ago. Vestis is down 69.5% since the beginning of the year, trading at $4.67 per share, which is 71.9% below its 52-week high of $16.62.

Investors should remain cautious, as market overreactions to news can present both opportunities and risks. While lower borrowing costs may benefit Vestis and other rate-sensitive sectors, the company's operational struggles and financial health should be closely monitored.

References:
[1] https://finance.yahoo.com/news/vestis-millerknoll-cogent-cognex-concentrix-205105408.html