The Fed’s first rate cut in 2025 is here. How investors can position their stock portfolios to benefit.

1. Fed likely to cut interest rates by 25 basis points soon. 2. Market response uncertain due to inflation and labor market concerns. 3. U.S. stocks typically perform well post-rate cuts, but this time is different. 4. Sector rotation expected from defensive to growth sectors after rate cuts. 5. Small-cap stocks could benefit significantly if more rate reductions follow.