Affirm's recent 30% jump after better-than-expected results highlights the potential in growth stocks, especially when they surprise on earnings. If a rate cut does occur in September, it could create a more favorable environment for growth stocks by lowering borrowing costs and boosting consumer spending.
Growth stocks often benefit from lower interest rates because their future earnings become more valuable in a low-rate environment. This could make companies like Affirm, which are focused on growth and have a strong business model, more attractive.
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