LYFT Inc (NASDAQ:LYFT) shares are trading higher by 4.49% to $11.52 going into the close of Tuesday’s session. The stock is trading higher on above-average volume and despite a lack of company-specific news. The stock is seeing strength as major indices are also higher ahead of Wednesday’s June inflation data report.
What’s Going On With Inflation Data?
The June CPI inflation report is eagerly anticipated as the most significant economic event of the week, with traders anxiously awaiting its release to gain insights into the Fed’s future policy decisions.
Recent conflicting job market data has added to the uncertainty, with expectations of a rate hike in July, but doubts lingering regarding additional rate hikes later in the year. Currently, the market assigns probabilities of 22% for another rate rise in September and 34% in November…Read More
What Else?
Inflation can affect different industries in different ways. In the case of Lyft, as a company operating in the ride-hailing industry, there could be potential impacts on its business. Higher inflation may result in increased costs for the company, such as fuel prices, vehicle maintenance, and insurance expenses.
Additionally, if inflation leads to higher interest rates, it could impact the cost of capital for the company. If investors believe that inflation will negatively impact Lyft’s profitability or growth prospects, they may adjust their positions, leading to heightened stock volatility.
According to data from Benzinga Pro, LYFT has a 52-week high of $21.52 and a 52-week low of $7.85.
