Soaring Interest Rates: Which Companies are Feeling the Pinch?
Much to the relief of businesses and investors, the Federal Reserve took a breather and kept interest rates unchanged at its September meeting. Faced with inflation at 40-year highs, the US central bank really had no choice but to keeping hiking rates, taking the range from nearly 0% to 5.25%-5.50% over just two years. Rising interest rates dampen demand for goods and services and curtail rising prices. Companies then face a double whammy, that of higher borrowing costs and pressure on their ASPs (average selling prices) due to low demand. Both impact corporate margin dynamics and investor sentiment for certain companies and sectors. Here’s a look at the most rate sensitive sectors.
By Acuity Trading | September 13, 2023