Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) shares are trading lower going into the close of Wednesday’s session. The stock is trading lower in sympathy with the broader market following Wednesday’s Federal Reserve decision.
When the Federal Reserve maintains or raises interest rates, it generally leads to higher borrowing costs for businesses and consumers. This can affect Alphabet’s operational costs, including the cost of financing projects and debt repayment.
Higher borrowing costs can negatively impact corporate profits, which can, in turn, lead to a decrease in the stock price.
What Happened?
The Federal Reserve maintained the federal funds rate at its existing range of 5.25% to 5.5% during its September meeting, as largely predicted by the market.
The Fed statement reiterated that additional policy firming to bring inflation to the 2% target may be appropriate depending on the upcoming economic data, effectively keeping the possibility of a future rate hike on the table…Read More
