Apple Inc (NASDAQ:AAPL) shares are trading marginally higher by 0.39% to $194.37 Wednesday afternoon. The stock is seeing modest gains amid overall market volatility ahead of Wednesday afternoon’s Fed decision.
Apple, like many large corporations, relies on borrowing for various purposes, including financing operations, expansion and acquisitions. When interest rates rise, the cost of borrowing also increases.
Higher interest rates can affect consumer spending, as borrowing costs for mortgages, credit cards and other loans increase. Apple’s revenue and sales could be influenced if consumer spending slows down due to higher interest rates.
See Also: A Look At Apple Stock Heading Into The Fed’s Rate Decision Wednesday
So What’s Going On With The Fed?
If the Federal Reserve raises rates Wednesday afternoon, it will bring the fed funds rate to its highest level in more than 20 years. Former Atlanta Fed president Dennis Lockhart says the Fed has to follow through with a rate hike following last month’s pause.
The two-day FOMC meeting will come to a close Wednesday and most expect the committee to raise rates another 0.25%, bringing the target fed funds rate up to a range of 5.25% to 5.5%, including Lockhart…Read More
According to data from Benzinga Pro, AAPL has a 52-week high of $198.23 and a 52-week low of $124.17.
