Workhorse Group Inc (NASDAQ:WKHS) shares are trading higher by 3.70% to $1.12 Friday, despite a lack of company-specific news. The stock is rising after the Fed paused rate hikes but indicated it sees two more 25-bps hikes this year.
When the Fed pauses interest rate hikes, it can lead to lower borrowing costs for companies. As an electric vehicle maker, Workhorse may require significant capital for research and development, manufacturing and expansion. Lower borrowing costs make it more affordable for the company to access capital and fund its operations.
Also, when interest rates are lower, it can stimulate consumer spending. Lower borrowing costs for consumers make it easier for them to purchase big-ticket items like electric vehicles. This increased demand can positively impact Workhorse’s sales and revenue.
See Also: ‘No More Fed Hikes!’ Economist Declares End Of Inflation Frenzy
According to data from Benzinga Pro, WKHS has a 52-week high of $4.73 and a 52-week low of $0.80.
