C3.ai, Inc. AI shares are trading lower Wednesday following comments from Fed Chair Jerome Powell suggesting further rate hikes may be needed to fight inflation, despite the June pause. AI stocks are also pulling back from recent strength.
What To Know: As reported by Benzinga, Powell reiterated the Fed's 2% inflation goal in an exchange with the House Financial Services Committee Wednesday. The Fed Chair explained that the level of interest rates is "different to the speed at which we move" and noted that the Fed remains committed to its target to support the economic well-being of lower-income communities.
Powell acknowledged that inflation remains far from the 2% target and noted that it's really hard to determine whether elevated interest rates will be the new normal.
Increased confidence about the future of AI has helped spark a rally in C3.ai shares over the last month, but the stock has been trending lower over the last few trading sessions.
The company is set to hold an Investor Day on Thursday. A company update will be provided, including information about its product roadmap, product demonstrations including C3 Generative AI and updates on its partner ecosystem.
Related Link: Fed Chair Jerome Powell Addresses Inflation, Affirms Stablecoins' Status As Money
AI Price Action: Shares of AI were down 11.4% at $38.25 at the time of publication, according to Benzinga Pro.
Image by Vicki Hamilton from Pixabay
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