Amazon.com, Inc. (NASDAQ:AMZN) shares are trading marginally higher by 0.8% to $138.04 going into the close of Thursday's session. Stocks scross sectors are rising due to the Fed's decision to keep interest rates unchanged, which has boosted the overall market.
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What Happened With The Fed?
The Federal Reserve has kept the federal funds rate steady at 5.25% to 5.5% for the second time in a row. Fed Chair Jerome Powell expressed mixed views by rejecting a rate cut but expressing worries about inflation falling below the 2% target.
Powell also hinted at a more cautious approach to future rate hikes, implying that the rate hike cycle might be nearing its end...Read More
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Why This Matters To Amazon Investors
When interest rates remain low, it makes it cheaper for companies like Amazon to borrow money for various purposes, such as expanding their operations, making acquisitions, or investing in new ventures. This can positively affect Amazon's growth prospects and, in turn, its stock price.
In general, low-interest rates reduce the cost of borrowing for businesses. Amazon, being a large and continuously expanding company, may take advantage of lower borrowing costs to fund its expansion plans or invest in new projects. This can be seen as a positive development by investors.
According to data from Benzinga Pro, AMZN has a 52-week high of $145.86 and a 52-week low of $81.43.
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