Robinhood Markets Inc HOOD shares are trading lower by 3.1% to $9.90 Thursday afternoon. Shares of several banking and financial stocks are trading lower amid overall market weakness with concerns about future rate hikes following yesterday's FOMC statement and lower-than-expected initial jobless claims data.
Higher interest rates can affect the profitability of financial companies, including those like Robinhood that operate in the brokerage and financial services sector.
Rising interest rates can also lead to higher borrowing costs for the company and potentially reduce customer activity, such as trading and investing, if borrowing becomes more expensive.
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, HOOD has a 52-week high of $13.23 and a 52-week low of $7.56.
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