Rate Cut Hopes Boost Business Services Stocks: Interface, Kyndryl, ASGN, CBIZ, and Equifax Trade Up

Several stocks, including Interface, Kyndryl, ASGN, CBIZ, and Equifax, have jumped in the afternoon session following a consumer price index report showing inflation easing and comments from Treasury Secretary Scott Bessent advocating for a 50-basis-point rate cut. This optimism is fueling hopes for lower borrowing costs, which can boost rate-sensitive sectors like Business Services.

The stock market experienced a broad rally on Tuesday, with several key indices reaching new highs following the release of the July Consumer Price Index (CPI) report and comments from Treasury Secretary Scott Bessent advocating for a 50-basis-point rate cut. The S&P 500 closed above 6,400 for the first time ever, while the tech-heavy Nasdaq Composite also hit a record high [1].

The CPI report showed that core inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. However, on a headline basis, the CPI increased 2.7% year over year, matching June and coming in softer than economists' expectations of a 2.8% rise [1]. This data suggested that rising goods inflation is no longer being offset by easing services inflation, but overall inflation remains within the Federal Reserve's target range.

Treasury Secretary Scott Bessent's comments advocating for a 50-basis-point rate cut in September further fueled optimism among investors. Bessent highlighted the potential confirmation of Stephen Miran to the Fed Board, emphasizing the need for strong leadership in monetary policy [3]. The July CPI report, which showed modest inflation, suggested that the Fed has room for more aggressive policy actions. A half-point cut could support growth and keep inflation in check, reducing borrowing costs for businesses and consumers [3].

Several rate-sensitive stocks, including Interface, Kyndryl, ASGN, CBIZ, and Equifax, jumped in the afternoon session following the CPI report and Bessent's comments. The optimism is fueling hopes for lower borrowing costs, which can boost rate-sensitive sectors like Business Services.

The Federal Open Market Committee (FOMC) is expected to lower interest rates in September, with around 94% of traders expecting that outcome according to the CME Group [1]. The upcoming September meeting is crucial as it may influence U.S. monetary policy amidst ongoing discussions about inflation and economic growth.

The war of nerves between President Donald Trump and the Federal Reserve System (Fed) over interest rate cuts seems to be reversed by employment and price indicators in July. President Trump seems to have gained the upper hand and is raising the level of pressure on Chairman Powell [2]. The pressure from President Trump and Treasury Secretary Bessent, who has advocated for a 50-basis-point rate cut, is becoming more obvious.

Investors will get two more pulse checks on the state of the economy later this week, with the release of the Producer Price Index on Thursday and retail sales data on Friday. The market will continue to closely watch these economic indicators and the Fed's monetary policy decisions.

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-rise-as-fed-rate-cut-bets-jump-after-cpi-inflation-report-234425698.html
[2] https://www.mk.co.kr/en/world/11393314
[3] https://www.fxleaders.com/news/2025/08/13/treasurys-bessent-urges-50-basis-point-fed-rate-cut-in-september-meeting/