US CPI Report Could Send Rate-Sensitive Stocks Soaring

The US CPI report on Friday could have a significant impact on interest rates and subsequently affect several rate-sensitive stocks. The Federal Reserve is expected to raise interest rates next week, with a 70% chance of a quarter-point hike.

Five stocks that could benefit from a softer core inflation reading are Opendoor, Rocket Companies, Affirm, Carvana, and Coinbase. These companies are directly or indirectly exposed to changes in interest rates and Treasury yields.

Opendoor is expected to see improved transaction activity and reduced financing costs if mortgage-rate expectations fall sharply. JPMorgan analyst Dae K Lee remains constructive on the stock, predicting it could reach ANI profitability without a housing rebound.

Rocket Companies has an even cleaner link to rates, with mortgage demand highly sensitive to borrowing costs. Morgan Stanley analyst Jeffrey Adelson upgraded Rocket to Overweight with a $19 target, expecting strong EPS growth from here.

Affirm stands to benefit if cooler inflation reduces funding pressure while keeping consumer borrowing affordable enough to support transaction growth. Loop Capital initiated coverage with a Buy rating and $105 target, describing Affirm as one of the 'highest-quality growth stories in consumer fintech.'