Why Rivian Stock Jumped Today
Investors pushed shares of Rivian Automotive (NASDAQ: RIVN) higher by as much as 5% Wednesday morning. Two news items released today were interpreted as tailwinds for the electric vehicle (EV) maker. Rivian shares pared those gains as the market pulled back from the morning's highs, but they remained higher by 2.2% at 1:05 p.m. ET.
Investors received a positive data point in the fight against inflation this morning. That could lead to meaningful help for Rivian in the future as it struggles to grow EV sales and stem losses. At the same time, new tariffs from the European Union (E.U.) on imported Chinese EVs could help European and U.S.-based EV makers grow market share in EU countries.
The news that the Consumer Price Index (CPI) was flat for the month of May helped drive the bond market higher, dropping yields on 10-year treasuries to the lowest level since April. That might not affect Rivian Automotive today, but borrowing costs could become an important story for Rivian sooner than some investors think.
Source Fool.com
