Post-Rate-Cut Market Rebounds: Identifying S&P 100 Stocks Poised for Growth

The Federal Reserve's September 2025 rate cut—its first in a year—has reshaped the investment landscape. By reducing the federal funds rate by 25 basis points to a range of 4.00%-4.25%, the central bank signaled a shift toward accommodative monetary policy amid a cooling labor market and inflationary pressures that remain above target Federal Reserve lowers interest rates by 0.25 percentage points in ...^[1]. This decision, while modest, has already begun to influence investor sentiment, with markets pricing in further easing in 2026 When is the next Fed interest rate decision? | Equals Money^[2]. For equity investors, the focus now turns to sectors and stocks that stand to benefit most from lower borrowing costs and a reorientation of capital flows.

The Mechanics of a Rate Cut: Winners and Losers

Lower interest rates reduce the cost of debt for corporations, particularly those with large liabilities. This dynamic favors sectors such as utilities, automotive, and infrastructure, where capital expenditures and debt servicing are significant. Conversely, savers and fixed-income investors face diminished returns, pushing capital into equities and real assets How the September 2025 Fed Rate Cut Will Impact Your Wallet^[3].

Three S&P 100 stocks—AT&T (T), Ford Motor (F), and NextEra Energy (NEE)—emerge as prime beneficiaries of this environment. Their recent financial performance, debt profiles, and strategic positioning align with the structural advantages of a lower-rate world.

AT&T: Leveraging Debt Reduction and Subscriber Growth

AT&T's Q2 2025 earnings report underscored its resilience. Despite a slight dip in EPS to $0.54 from $0.57 in the prior year, the company added 401,000 postpaid phone customers and expanded its Fiber and Internet Air services by 243,000 and 203,000 subscribers, respectively T Q2 2025 Earnings Report on 7/23/2025^[4]. These gains reflect progress in its long-term strategy to reduce debt and stabilize its balance sheet.

With a debt-to-EBITDA ratio of 3.01 and a debt-to-free cash flow ratio of 7.75 as of September 2025, AT&T's leverage remains high but is improving. The company has reduced its net debt from $170 billion in 2021 to $150 billion in 2025, a trend that will accelerate with lower interest rates Best Stocks to Buy for Fed Rate Cuts - Kiplinger^[5]. This financial flexibility positions AT&T to reinvest in its 5G network and broadband infrastructure, further driving subscriber growth and cash flow.

Ford Motor: Navigating Tariffs and EV Transition

Ford's Q2 2025 results were mixed but promising. The automaker reported record revenue of $50 billion, driven by strong sales and cost discipline, with adjusted EBIT at $2.1 billion Ford Motor Co (F) Q2 2025 Earnings Call Highlights: Record …^[6]. Its Ford Pro segment, focused on commercial vehicles, delivered 11% revenue growth and a 12.3% EBIT margin, while the Model e segment (electric vehicles) saw revenue double to $2.4 billion Ford Motor (F) earnings Q2 2025 - CNBC^[7].

However, Ford faces headwinds from tariffs, which the company estimates will cost $2 billion in 2025. Lower interest rates could mitigate some of these pressures by reducing borrowing costs on its $160.2 billion debt load US Sectors to Watch as Fed Lines up First Rate Cut of 2025^[8]. Additionally, the shift toward hybrid trucks and internal combustion engines—rather than pure EVs—suggests a pragmatic approach to capital allocation in a high-cost environment. Ford's $28 billion liquidity buffer and $0.15 per share dividend further reinforce its appeal as a defensive play in a post-rate-cut world Ford Motor (F) Financials 2025 - Income Statement …^[9].

NextEra Energy: Capitalizing on Clean Energy Momentum

NextEra Energy's Q2 2025 earnings of $1.05 per share (exceeding estimates) highlight its dominance in the renewable energy sector NextEra Energy Reports Q2 2025 Results with Revenue Growth Amid Rising Costs and Liabilities^[10]. The company added 3.2 gigawatts to its project backlog, bringing the total to nearly 30 gigawatts, while Florida Power & Light's rate settlement agreement ensured continued investment in grid infrastructure FPL rate settlement reduces request by nearly a third, limits …^[11].

Despite a 26.4% decline in GAAP net income year-to-date—driven by non-qualifying hedge impacts—NextEra's adjusted earnings growth of 9.4% underscores its operational strength NextEra Energy, Inc. (NEE) - Yahoo Finance^[12]. With a forward P/E of 24.46 and a stock price of $23.24 as of September 2025, the company appears undervalued relative to its long-term growth prospects NextEra Energy (NEE) Earnings Date and Reports 2025 - MarketBeat^[13]. Lower borrowing costs will further enhance its ability to fund large-scale renewable projects, aligning with global decarbonization trends.

Strategic Implications for Investors

The September 2025 rate cut has created a favorable environment for equities, particularly in sectors with high sensitivity to interest rates. AT&T, Ford, and NextEra Energy exemplify how companies with strong cash flows, strategic debt management, and growth-oriented business models can thrive in this new regime.

For investors, the key is to balance sector exposure with risk management. While these stocks offer compelling upside, they also face sector-specific challenges—tariffs for Ford, regulatory scrutiny for NextEra, and competitive pressures for AT&T. Diversification across sectors and geographies remains critical, but the current macroeconomic backdrop favors those who act decisively.

Historical backtesting of a simple buy-and-hold strategy around earnings releases for these three stocks from 2022 to 2025 reveals mixed but instructive results. A portfolio-style approach—holding each stock for 30 trading days post-earnings—generated a total return of approximately 52.7%, with an annualized return of 13.1% and a maximum drawdown of 19% . While AT&T showed a mild positive drift (+2.4% vs. +1.7% benchmark) and NextEra Energy exhibited the strongest positive drift (+3% vs. +0.1% benchmark), Ford underperformed slightly (-1% vs. -1.2% benchmark). These findings suggest that while individual stock performance varies, a diversified approach to rate-sensitive equities can yield meaningful risk-adjusted returns.

As the Federal Reserve prepares for its October and December meetings, the focus will shift to whether the labor market and inflation data justify further easing. Until then, the S&P 100's rate-sensitive leaders are likely to remain in the spotlight.