Rivian Automotive Inc (NASDAQ:RIVN) shares are trading higher by 7.81% to $27.33 Wednesday morning, despite a lack of company-specific news for the session. The stock is trading higher amid overall market volatility ahead of Wednesday afternoon’s Fed decision.
As interest rates rise, borrowing becomes more expensive for companies like Rivian. This could affect their ability to access credit or raise capital at favorable rates, potentially impacting their growth plans and overall financial health.
Additionally, when the Fed raises interest rates, it’s often done to control inflation or prevent an overheated economy. Higher interest rates can result in reduced consumer spending as borrowing costs for mortgages, auto loans and other credit-dependent purchases increase.
This, in turn, might impact Rivian’s sales if potential customers become more cautious with their spending.
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, RIVN has a 52-week high of $40.86 and a 52-week low of $11.68.
