What's Going On With Rivian (RIVN) Stock?
Portfolio Pulse from Henry Khederian
Rivian Automotive Inc (NASDAQ:RIVN) shares are trading slightly higher by 1.4% to $17.75, rebounding after Monday's weakness. The stock is gaining due to expectations of a Federal Reserve rate cut in September, which could boost growth stocks like Rivian by reducing borrowing costs and increasing consumer spending on large purchases such as electric vehicles.
July 16, 2024 | 5:31 pm
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Rivian Automotive Inc (NASDAQ:RIVN) shares are trading slightly higher by 1.4% to $17.75, rebounding after Monday's weakness. The stock is gaining due to expectations of a Federal Reserve rate cut in September, which could boost growth stocks like Rivian by reducing borrowing costs and increasing consumer spending on large purchases such as electric vehicles.
The expectation of a Federal Reserve rate cut is likely to benefit growth stocks like Rivian by reducing borrowing costs and increasing consumer spending on large purchases such as electric vehicles. This environment is favorable for Rivian as it can improve their financing conditions and reduce the discount rate applied to future earnings, making their stocks more attractive.
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