Why Lemonade Insurance Stock Rallied More Than 14% Last Week
Shares of insurance upstart Lemonade (NYSE: LMND) rose 14.2% last week in shortened holiday-week trading. There was no new news from the company to cause the bounce, but punished growth stocks in general rallied after an especially brutal June.
The positive start to kick off July was but a small shred of reprieve for Lemonade shareholders. The stock is down 49% so far in 2022, compared with negative-18% for the S&P 500.
Talk of an upcoming (or possibly already present) economic recession had growth stocks in rally mode last week. In an attempt to tame inflation, the U.S. Federal Reserve has been raising interest rates to cool off the economy. Early data is showing that consumer spending habits are being affected, travel is slowing down, and energy costs are moderating. If inflation eases, the Fed could slow its pace of interest rate increases.
Source Fool.com
