Meta Platforms Inc (NASDAQ:META) shares are trading lower by 0.60% to $282.64 during Wednesday’s session. Stocks across sectors are trading lower following rate hike comments from Fed Chair Powell.
Higher interest rates can affect the overall economy and consumer spending patterns. If interest rates rise, it may lead to reduced consumer spending, which can impact businesses’ advertising budgets.
Advertisers, including those who advertise on Meta Platforms’ platforms like Facebook and Instagram, might cut back on their advertising spending, which could result in lower ad revenue for the company.
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What Happened?
During the House Financial Services Committee session on Wednesday, Federal Reserve Chair Jerome Powell emphasized the distinction between the pace of interest rate movements and the prevailing level of interest rates.
Powell justified the decision to pause in June by highlighting the considerable magnitude and rapidity of interest rate hikes implemented by the Federal Reserve in the past year.
According to the CME Group FedWatch Tool, investors currently assign a 79% probability to a 25-basis-point increase in the Federal Reserve rate in July. This reflects an increase from the 62% probability recorded last week…Read More
According to data from Benzinga Pro, Meta Platforms has a 52-week high of $287.85 and a 52-week low of $88.09.
