Why Home Depot and Lowe's Fell After the Fed Held Interest Rates Steady.
Although they sit atop the home improvement industry, these two businesses aren't immune from macroeconomic forces.
Why Home Depot and Lowe's Fell After the Fed Held Interest Rates Steady.
Overview
After Kevin Warsh's first meeting as the new Federal Reserve chair, it was announced that the federal funds rate would remain unchanged. The vote was unanimous, with inflationary pressures in full focus.
The central bank made this announcement at 2 p.m. ET on June 17. By the time the stock market closed two hours later, shares of Home Depot (NYSE: HD) and Lowe's Companies (NYSE: LOW) had each fallen between 2.5% and 3%. By market close the following day on June 18, both retail stocks had basically clawed back their losses.
Details
However, investors should still learn a lesson from this volatility driven by market reactions.
Source
Originally published at www.fool.com.
