The financial world is abuzz with anticipation as the Federal Reserve is expected to cut interest rates later this year. Historically, such a move has proven to be a significant catalyst for small-cap stocks, particularly in the capital-intensive innovation fields. Since the Federal Reserve began hiking rates in March 2022, after all, developmental companies have faced considerable challenges in raising funding.

This prolonged downturn has led many innovation-oriented companies to trade at substantial discounts relative to their commercial potential. Two such companies that stand out are Archer Aviation (NYSE: ACHR) and Ocular Therapeutix (NASDAQ: OCUL).

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Source Fool.com