Rivian Automotive Inc (NASDAQ:RIVN) shares are trading slightly higher by 1.4% to $17.75 during Tuesday's session, rebounding following Monday's weakness. The stock is gaining after June U.S. retail sales showed no month-over-month growth, dropping from a revised 0.3% increase in May to flat, aligning with predictions.

Fed futures now indicate a guaranteed rate cut in September. Traders estimate an 88% chance for a 25-basis-point cut and a 12% chance for a 50-basis-point cut.

Why This Matters To RIVN Investors

The expectation of a rate cut by the Federal Reserve can boost stock prices in general. Lower interest rates reduce borrowing costs for consumers and businesses, potentially increasing spending and investment. This environment is often favorable for growth stocks, like Rivian, as it can improve their financing conditions and reduce the discount rate applied to future earnings, making their stocks more attractive.

Lower interest rates also make it cheaper for consumers to finance large purchases, such as electric vehicles. This can boost demand for Rivian's vehicles, as more consumers are able to afford financing or leasing options due to the lower interest rates on auto loans.

Read Also: Will Electric Vehicles Reach 50% Market Share In US By 2030? New Data Says Yes

How To Buy RIVN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Rivian Automotive's case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, RIVN has a 52-week high of $28.06 and a 52-week low of $8.26.