Why Guardant Health Stock Soared Nearly 10% Higher Today
Shares of precision oncology company Guardant Health (NASDAQ: GH) popped 9.8% higher today as of market close. There was little in the way of news from Guardant Health that caused the spike, but there was general strength across the biotech space while the stock market overall was flat. The Nasdaq Biotech was up 2%, while the S&P 500 was tracking toward a 0.1% decline on the day.
Today's run higher for the stock may simply be a relief rally. Guardant Health shares are still down more than 60% from their all-time high in early 2021. It's a similar story to other high-growth stocks that exploded higher early on in the pandemic, only to come back down to earth again. With the Federal Reserve poised to hike interest rates several times this year, companies that operate at a loss like Guardant Health are out of favor among investors at the moment.
As a reminder, rising interest rates lower the present value of risk assets like stocks, especially high-growth names that won't turn a profit anytime soon.
Source Fool.com
