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.

U.S. stocks rose after the Federal Reserve lowered its benchmark interest rates by 50 basis points to a range of 4.75% to 5%. That was the first rate cut in over four years that marked the beginning of a monetary-easing cycle in the world's largest economy.