Why Shares of Lemonade Are Rising Today
Shares of insurtech company Lemonade (NYSE: LMND) got off to a good start this morning, trading more than 3.4% higher as of 11:05 a.m. EDT for no obvious reason.
Seeing as there is no obvious company-specific news, the rise in shares likely has more to do with the market easing, or at least getting used to, some of its fears on inflation, which is good news for high-flying tech companies like Lemonade.
Last week, the Federal Reserve surprised a good chunk of the market by indicating that it expects to have to start increasing the federal funds rate, which is currently near zero, in 2023, a full year ahead of when it initially expected to. Rate hikes are typically driven by inflation, so the broader market feared that inflation could be more severe than the Fed has been letting on.
Source Fool.com
