RDFN - Why Redfin Stock Was Plummeting This Week
2024-04-19 08:40:16 ET
According to data compiled by S&P Global Market Intelligence , Redfin (NASDAQ: RDFN) stock was down by nearly 12% week to date in the hours before market open Friday. Investors were concerned about the latest speculation regarding the Federal Reserve's moves -- or lack thereof -- on interest rates. These are crucial to the real estate business, as homebuying is heavily dependent on debt financing.
Across the week, investors were still reacting to a higher-than-expected inflation readout for March. The government's Bureau of Labor Statistics reported that the U.S. Consumer Price Index (CPI) rose by 3.5% year over year, which was a fatter gain than many economy watchers had predicted.
Inflation has been, and will likely continue to be, the No. 1 threat to our economy in the eyes of Fed officials and many economists. In order to keep battling it, the former is probably going to hold the central bank's key interest rates steady instead of cutting them as previously -- and recently --planned.
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Why Redfin Stock Was Plummeting This Week