AMC Entertainment Holdings Inc AMC shares are trading lower by 5.2% to $7.74 ahead of Thursday's close amid overall market weakness. Concerns about future rate hikes following yesterday's FOMC statement and lower-than-expected initial jobless claims data are sending stocks lower during Thursday's session.
AMC, like other companies in the entertainment and cinema industry, incurs significant operating costs to maintain and operate its theaters. These costs can include rent, utilities and labor expenses.
When concerns about future rate hikes arise, it can lead to higher borrowing costs for the company.
AMC's substantial debt load and interest expenses make it sensitive to changes in interest rates, potentially affecting its profitability and financial health.
See Also: Why AMC Stock Has Been Extremely Volatile Lately
What's Going On With The Broader Market?
The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.
The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year...Read More
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