Why Carvana Stock Was on the Rise Earlier Today
Shares of Carvana (NYSE: CVNA) were up 6.8% as of 11:31 a.m. ET on Wednesday. The move follows many growth stocks that were moving higher ahead of the Federal Reserve's decision on interest rates.
The stock has fallen 91% from its lofty highs in 2021. Rising interest rates have been a major headwind to used vehicle sales lately, which has put the brakes on the robust revenue growth Carvana experienced through 2021, but investors are looking past that to a possible end to the headwinds in the coming months.
The Federal Reserve is expected to raise the federal funds rate by 0.75 percentage points. Higher inflation and interest rates are making it more expensive to finance used vehicles, which have soared in price over the last few years. But the recent slowing demand for used cars has hurt Carvana's momentum.
Source Fool.com
