Why Moderna Stock Is Slipping Today
Shares of Moderna (NASDAQ: MRNA) were 5.4% lower as of 10:36 a.m. EDT on Wednesday even though the biotech didn't announce any news that would cause its shares to fall.
So what's the culprit behind today's decline? Biotech stocks are sliding in general. The two major biotech exchange-traded funds (ETFs) -- iShares Nasdaq Biotechnology ETF and SPDR S&P Biotech ETF -- are both down, as investors appear to be nervous because of the Federal Reserve Board meeting today.
There's a simple reason biotech stocks (and other stocks as well) are volatile ahead of the Fed's conclusion of its two-day meeting: It's possible that the central bank could raise interest rates. If that happens, stocks would be less attractive to investors in comparison to other assets such as bonds because yields increase as interest rates increase.
Source Fool.com
