The Federal Reserve’s September 16–17, 2025 policy meeting is shaping up to be one of the most consequential in years. With markets widely expecting a rate cut, investors are re-evaluating which sectors could see the biggest tailwinds.
Construction sits at the heart of that debate: interest rates affect everything from municipal bond issuance to mortgage affordability to the cost of financing large-scale industrial projects.
Here are five U.S. construction-linked stocks uniquely positioned to benefit—or be tested—by the Fed’s next move.
1. United Rentals (NYSE: URI) – The Industry’s Pulse Point
United Rentals is often described as the “heartbeat of construction activity.” As the largest equipment rental provider in North America, it touches infrastructure, commercial building, and industrial sectors alike.
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Unique angle: URI doesn’t just reflect demand—it amplifies it. When project pipelines grow on the back of cheaper financing, contractors turn to rentals first before committing to ownership.
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Why it matters now: A Fed cut could accelerate deferred projects, keeping fleet utilization high and reinforcing the company’s recent decision to raise its 2025 guidance.
2. Martin Marietta Materials (NYSE: MLM) – Riding the Data Center Wave
Aggregates may sound boring, but they are the silent enablers of modern growth. Martin Marietta has become more than just a stone-and-gravel company—it is riding the data center and AI infrastructure boom, alongside traditional roadbuilding.
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Unique angle: The U.S. federal infrastructure bill guarantees multi-year demand, but the AI-driven construction of hyperscale data centers is what sets MLM apart. In 2025, no other construction subsector is seeing this combination of public and private demand.
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Why it matters now: If borrowing costs ease, private-sector investment in data centers accelerates, directly boosting MLM’s aggregates volumes and pricing power.
3. Vulcan Materials (NYSE: VMC) – Infrastructure’s Steady Hand
While MLM is enjoying private tech demand, Vulcan is doubling down on public infrastructure. Its mix leans heavily on highways, bridges, and large-scale civil works—projects less sensitive to cyclical housing demand.
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Unique angle: VMC benefits most when municipalities can issue bonds cheaply. A Fed cut reduces borrowing costs for states and cities, which could unleash another wave of road and bridge contracts.
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Why it matters now: The company has kept pricing disciplined and expects a stronger second half of 2025. The Fed’s decision could turn that cautious optimism into real momentum.
4. Quanta Services (NYSE: PWR) – Grid Modernization Meets Data Centers
If there’s a “next-decade” story in construction, it’s Quanta Services. The company sits at the crossroads of energy transition, grid reliability, and the explosive growth of AI-powered data centers.
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Unique angle: Unlike materials producers, PWR wins contracts tied to utility capex and long-term electrification needs. Lower financing costs could speed approvals for multibillion-dollar transmission projects.
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Why it matters now: With a record backlog above $35 billion, Quanta’s challenge isn’t finding work—it’s executing. A rate cut would only widen its runway for growth.
5. D.R. Horton (NYSE: DHI) – The Housing Wild Card
No sector reacts faster to rate policy than housing. As the largest U.S. homebuilder, D.R. Horton embodies the Fed’s influence on affordability.
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Unique angle: Unlike aggregates or grid firms, DHI’s fortunes swing with every 25-basis-point move in mortgage rates. If Powell signals a clear easing path, pent-up buyers sidelined by affordability concerns could re-enter the market this fall.
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Why it matters now: Stabilizing cancellation rates suggest resilience. A Fed cut could turn stabilization into a rebound—making DHI the most sensitive “Fed stock” on this list.
Big Picture: Why the Fed Matters for Construction Stocks
Construction is a rate-sensitive but unevenly exposed sector:
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Aggregates & infrastructure (MLM, VMC): Long-term demand, amplified if states borrow more cheaply.
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Industrial & rental (URI): Directly benefits from unlocked project budgets.
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Grid/energy (PWR): Structural megatrends made cheaper to finance.
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Housing (DHI): The most immediate and volatile response to policy.
With markets assigning nearly 90% odds to a September cut, investors should prepare for construction stocks to see renewed interest. But just as important as the decision itself will be the Fed’s tone—whether Powell signals a series of cuts or just a one-off adjustment.
In short, the Fed isn’t just setting the cost of money—it’s setting the pace of America’s next construction cycle.
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