Starbucks Corp SBUX shares are trading lower Thursday amid overall market weakness as stocks move lower following Wednesday's Fed rate hike announcement.
The Federal Reserve raised interest rates by three-quarters of a percentage point on Wednesday, representing the most aggressive rate hike since 1994.
"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures," the central bank said.
Wednesday's rate hike brings the target range for the federal funds rate up to 1.5% to 1.75%. In an effort to achieve maximum employment and 2% inflation over the long term, the Fed said it anticipates that ongoing increases in the target range will be appropriate.
The Fed noted that Russia's invasion of Ukraine and COVID-related lockdowns in China have put additional upward pressure on inflation.
"The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals."
SBUX Price Action: Starbucks has traded between $126.32 and $68.39 over a 52-week period.
The stock was down 3.71% at $71.44 at press time, according to data from Benzinga Pro.
Photo: sahinsezerdincer from Pixabay.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.