The Federal Reserve’s Sept. 18 decision to cut interest rates by 50 basis points, with more rate cuts expected at this year’s remaining two meetings, opens a new chapter for investors. This long-awaited policy shift, aimed at supporting the economy, could provide a particular boost for exchange operators, equity markets, and IPO activity, according to investment management firm Oppenheimer.
Analysts Owen Lau and Guru Sidaarth, in a recent note, pointed out that lower interest rates generally encourage debt refinancing, benefiting S&P Global Inc. (SPGI) as a leader in credit ratings and analytics. Plus, SPGI and peers like MSCI Inc. (MSCI) and Nasdaq, Inc. (NDAQ), with their index businesses, could benefit from equity market stability. Healthy equity markets may also reopen the IPO window, driving further growth for Nasdaq beyond its Verafin and Adenza fraud detection and software units.
