Target (TGT) Stock Hits A New 52-Week Low: What's Going On?

Target Corp TGT shares are trading lower by 2.4% to $114.48 Friday morning. Concerns about future rate hikes following Wednesday's FOMC statement and lower-than-expected initial jobless claims data are sending stocks across sectors lower this week.

Why It Matters

Higher interest rates can lead to higher borrowing costs for consumers, including credit card debt and mortgages. This could potentially reduce consumer spending, including at retailers like Target, as consumers have less disposable income.

Also, if investors believe that these economic concerns will persist or worsen, they may have a long-term negative outlook on Target's future earnings potential, which could further impact its stock price.

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, TGT has a 52-week high of $181.70 and a 52-week low of $114.58.