Lucid Group Inc LCID shares are trading higher by 9.65% to $15.45 Tuesday afternoon. Shares of several companies in the auto & auto component sector are trading higher amid overall market strength as stocks rebound following September's selloff. EV stocks are also rebounding with strength in Rivian Automotive Inc RIVN also helping to lift the sector.
Ongoing Fed policy tightening and inflation concerns have otherwise weighed on the sector and consumer spending outlook.
A drop in treasury yields has helped lift the broader market in today's session as the 10-year Treasury yield hit an intraday low of 3.583% Tuesday morning. The intraday drop in U.S. Treasury yields benefits companies such that, when interest rates otherwise rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
Equities fell in September due to concerns over inflation, contractionary Federal Reserve policy and a potential recession. An economic slowdown could negatively impact discretionary spending.
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