Rivian Automotive Inc RIVN shares are trading lower by 2.6% to $21.82 during Thursday’s session amid overall market weakness. Shares of several auto stocks are trading lower following a rise in Treasury yields after yesterday’s FOMC statement. Also, weekly initial jobless claims data came in below estimates, which could potentially encourage more rate hikes.
Rivian, like many EV companies, requires substantial capital for research, development, manufacturing, and expansion. Rising interest rates can increase the cost of borrowing and financing, potentially impacting the company’s ability to fund its growth initiatives.
Investors may worry about higher capital costs affecting Rivian’s financial health and growth prospects.
What’s Going On?
The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.
The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year…Read More
According to data from Benzinga Pro, RIVN has a 52-week high of $37.39 and a 52-week low of $11.68.
Image and article originally from www.benzinga.com. Read the original article here.