Nikola Stock Is Rising Wednesday: What's Going On?

Zinger Key Points
  • Nikola shares are trading higher by 11.2% going into the close of Wednesday's session.
  • The Federal Reserve chose to keep the federal funds rate steady at 5.25%-5.5%.

Nikola Corp NKLA shares are trading higher by 11.2% to $0.80 going into the close of Wednesday's session. Shares of several companies in the broader industrial sector are trading higher amid overall market strength after the Fed left rates unchanged, with most Fed officials seeing rate cuts in 2024-2026.

Lower interest rates mean cheaper access to capital. For a company like Nikola, which operates in capital-intensive industries such as electric vehicles, lower interest rates can reduce the cost of borrowing money for expansions, research and development.

It could potentially make it more affordable for Nikola to fund its projects, invest in technology and grow its operations.

What Happened With The Fed?

The Federal Reserve chose to keep the federal funds rate steady at 5.25%-5.5%, continuing the trend from the previous two meetings. This likely indicates the conclusion of the period of increasing rates that began in March 2022.

While acknowledging a decrease in inflation over the past year, the Fed remains concerned about its elevated level, emphasizing its determination to bring it back to the 2% target.

The Fed also reiterated its commitment to making future policy decisions based on incoming data...Read More

See Also: Nikola Founder In Hot Water: Prosecutors Demand 11 Years Jail Time For Investor Fraud

According to data from Benzinga Pro, NKLA has a 52-week high of $3.71 and a 52-week low of $0.52.

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