One stock that could go parabolic if the Fed cuts rates is Upstart ( UPST 7.32%). Upstart's software is an alternative to FICO scores and is used primarily in personal and auto loans, two areas that haven't seen as much demand since interest rates rose.

The decision by the Fed's policy-setting committee to cut interest rates for the first time since March 2020 was prefaced by an unusual amount of market uncertainty as to how much the central bank would lower its benchmark rate from a two-decade high of 5.25% to 5.5%, where it has stood since July 2023.

Over the past couple of years, the US economy has wrung out inflation like dirty mop water from just about every sector — except for the housing market, which remains paralyzed by high prices and chronically low supply.