Home Depot (NYSE:HD) and Lowe’s Companies (NYSE:LOW) both pared their early gains after the Federal Reserve announced a 75-point rate hike.
The Fed’s statement indicated that recent indicators point to modest growth in spending and production.
“Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”
The home improvement retailer stocks may have dropped after the Fed’s dot plot came in more hawkish than anticipated.
“Basically they’re saying it’s front loaded but they are staying restrictive all the way through 2025,” John Briggs of NatWest Markets.
Investors have been hoping for a soft economic landing to create an easier path for Home Depot (HD) and Lowe’s (LOW) with mortgages rates on the rise.
Shares of HD were up 0.44% at 2:35 p.m on Wednesday, while LOW was up 0.18%. Both stocks were up more than 2% earlier in the session.
Image and article originally from seekingalpha.com. Read the original article here.