Some smaller stocks could see big gains as the Fed cuts rates. Here are a few

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These small-cap names could outperform as a lower interest-rate environment lessens the burden of their debt load.

Stocks with smaller market capitalizations are set to reap the benefits from the start of the Federal Reserve's latest rate-cutting campaign. The U.S. central bank reduced interest rates by an oversized half-percentage point on Wednesday, pushing stocks higher. The S & P 500 ended the week with a 1.4% increase, clawing back its losses from earlier in September. The Dow Jones Industrial Average and Nasdaq Composite added 1.6% and 1.5%, respectively, this past week.

Analyst Gavin Clark-Gartner wrote that he was taking advantage of recent weakness in the stock and, as an additional catalyst, cited a good entry point for Sarepta's launch of Elevidys, a gene therapy used to treat Duchenne muscular dystrophy. "With expectations reset and a clear understanding that the Elevidys ramp isn't coming through until into 2025 , we believe the SRPT stock setup is now good to own for the launch with room for upside execution," the analyst wrote.

 

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