Plug Power Inc (NASDAQ:PLUG) shares are trading lower by 4.3% to $7.74 Tuesday afternoon amid overall market weakness. Concerns about future rate hikes following yesterday’s FOMC statement and lower-than-expected initial jobless claims data are sending stocks lower going into Tuesday’s close.
Plug Power is involved in the development and manufacturing of hydrogen fuel cell systems, which is a capital-intensive industry. Concerns about future rate hikes can lead to higher borrowing costs for the company.
Plug Power may need to raise capital to fund its growth and expansion plans, and if interest rates rise, it can increase the cost of that capital, potentially impacting the company’s financials and profitability.
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, Plug Power has a 52-week high of $25.50 and a 52-week low of $7.39.
