Shopify Inc. SHOP shares are trading down Thursday. Worries over further Fed rate hikes have fueled a downturn in the wider tech sector, which could also negatively influence growth stocks.
What To Know: The market experienced a downturn Thursday due to increased worries over the Federal Reserve raising interest rates further during the remainder of this year. The resilient jobs market, despite the Fed's aggressive rate hike cycle, is the root cause.
According to the ADP National Employment Report, U.S. private employers outpaced expectations by adding 497,000 jobs in June, rising above the estimated 220,000.
As a result, the odds of a 0.25% interest rate hike in July soared over 90%, according to the CME FedWatch tool. The non-farm payrolls report is scheduled for release on Friday morning, drawing everyone's attention next.
Shopify stock has rallied during 2023, with an overall increase of 75% in the stock since the start of the year. Shopify shares were up more than 35% over the last three months, with the major move attributed to the company turning a surprise profit in May.
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SHOP Price Action: Shares of SHOP were down 3.99% at $61.87 at the time of publication, according to Benzinga Pro.
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