Why ChargePoint Stock Is Moving Today

ChargePoint Holdings Inc CHPT shares are trading higher by 19.6% to $2.87 Thursday morning. Stocks across sectors are trading higher amid overall market strength after the Fed left rates unchanged, with most Fed officials seeing rate cuts in 2024-2026.

ChargePoint, like many companies, might need to raise capital in the future for expansion, research or infrastructure development. If interest rates are lower, borrowing costs are cheaper. This means ChargePoint could potentially borrow money at a lower rate, reducing their cost of capital.

Lower borrowing costs can lead to more investments in expanding their charging network or developing new technologies, which could positively impact their growth prospects.

Clean energy stocks may also be getting a lift following COP28 climate summit, which resulted in commitments to shift away from fossil fuels. 

What Happened With The Fed?

The Federal Reserve chose to keep the federal funds rate steady at 5.25%-5.5%, continuing the trend from the previous two meetings. This likely indicates the conclusion of the period of increasing rates that began in March 2022.

While acknowledging a decrease in inflation over the past year, the Fed remains concerned about its elevated level, emphasizing its determination to bring it back to the 2% target.

The Fed also reiterated its commitment to making future policy decisions based on incoming data...Read More

See Also: Bitcoin, Ethereum, Dogecoin Up On Fed's Rate Cut Projection

According to data from Benzinga Pro, CHPT has a 52-week high of $13.65 and a 52-week low of $1.79.