On the date of publication, Joel Baglole held long positions in AAPL and NVDA. Long-term investors might want to view the decline as a buy the dip opportunity. TSLA stock is currently trading 46% below its 52-week high and has slumped 14% in the last six months. A halt to interest rate increase on the part of the Fed could also help the company and its share price. Tesla continues to slash the prices of its electric vehicles in markets around the world to try and boost sales. On an earnings call, Tesla CEO Elon Musk cited interest rates as an issue affecting the automaker and said he expects 12 months of stormy weather ahead. The company announced that its first-quarter net income fell 24% from a year earlier to $2.51 billion. The impact of higher interest rates was reflected in Tesla’s most recent earnings, which missed targets in most segments. The electric vehicle maker has struggled mightily under the weight of higher rates over the last year, both as it tries to fund its continued expansion and sell its cars to consumers who are sensitive to the interest charged on auto loans. Looking ahead, it appears that Apple is once again ready to take center stage among large cap tech securities.Ī pause in interest rate increases can only help Tesla (NASDAQ: TSLA). While decent, the gains in Apple’s share price have trailed the recovery seen in other tech stocks such as Nvidia (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META), which have gained 100% or more in the same timeframe. In the past six months, Apple’s stock has rallied 25%. Many price targets on the stock now exceed $200 a share, suggesting at least 15% upside from current levels. AAPL stock was a big winner as markets rallied with investors hunting for stocks to buy after the Fed meeting, rising 5% in trading on May 5.Īdditionally, APPL stock has been upgraded all over Wall Street both before and after the company’s latest earnings release. On the day after the Fed signaled a likely pause in its interest rate hikes, Apple reported better-than-expected earnings, announced a new $90 billion stock buyback program and raised its quarterly dividend by 4% to 24 cents per share. The stock of Apple (NASDAQ: AAPL) looks set to take-off after trading sideways for much of this year. Here are three Fed rate hike stocks set to soar after the May 2023 decision. However, the latest Fed moves are particularly good news for certain companies and their stockholders. Competing forces continue to gyrate stocks. Where markets go from here though is not clear. On May 5, the Dow Jones Industrial Average rose more than 500 points. Second, indications that interest rates are unlikely to go any higher in the near-term is cause for celebration among investors and traders. First, interest rates have been ratcheted higher, making borrowing costs for businesses and consumers more expensive and potentially slowing the economy. The latest decision on interest rates by the Fed and the signals sent to markets are consequential for two reasons. The announcement caused investors to start looking for the best stocks to buy after the Fed meeting. This raised the federal funds rate to a target range of 5% to 5.25%, the highest level in 16 years. The signal that rates may not go any higher came as the central bank approved its 10th interest rate increase in a little more than a year. Federal Reserve (Fed) hinted that it now plans to pause its monetary tightening regime and assess its impact on the economy. InvestorPlace - Stock Market News, Stock Advice & Trading Tips
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