UPDATE: As of 12:26pm, Amazon has put a temporary pause on hiring, joining other companies in the past 24 hours like Qualcomm (NASDAQ:QCOM) who have decided to pare back their workforce ambitions.
Amazon.com, Inc. (NASDAQ:AMZN) shares are trading lower by 1.63% to $90.62 during Thursday’s session. Shares are falling amid overall market weakness as stocks see volatility following the Fed’s decision to hike rates by 75 basis points.
When interest rates rise, the value of future cash flows is reduced for growth stocks like Amazon, which in turn lower the value of the stock.
What Happened?
The Federal Reserve raised its target fed funds rate by 0.75% on Wednesday to a new range of between 3.75% and 4%, its fourth 0.75% rate hike in five months.
The Fed said it will continue with its previously announced plan to let Treasury securities and agency debt and agency mortgage-backed securities roll off its balance sheet on a monthly basis.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed said in a statement…Read More
According to data from Benzinga Pro, AMZN has a 52-week high of $188.11 and a 52-week low of $90.16.
