Why ChargePoint Holdings Stock Soared This Week
Shares of ChargePoint Holdings (NYSE: CHPT) soared as much as 16% this week, according to data from S&P Global Market Intelligence. The electric vehicle (EV) charging company climbed higher after the Federal Reserve announced it was keeping interest rates stable for the time being. ChargePoint -- along with a lot of renewable companies -- is an interest rate sensitive stock and has gotten beaten down with the Federal Reserve rapidly increasing the Federal Funds Rate in recent years. Even after this week's bump, shares of ChargePoint are down 94% from all-time highs and are down 78% year to date.
It is also possible that the high short interest had an effect on ChargePoint's stock price. As of the market close on Thursday, Nov. 2, ChargePoint stock is up 16.1% this week.
This week, the Federal Reserve decided to keep the Federal Funds Rate flat, at least until its next policy meeting. The central bank has gone through the fastest rate hike cycle in history since the beginning of last year as it tries to combat high inflation in the United States.
Source Fool.com
