Why Lumen Stock Is Sinking This Week
Shares of Lumen Technologies (NYSE: LUMN) are losing ground this week. The telecom company's share price was down 18.7% from the previous week's market close as of 10:45 a.m. ET Friday, according to data from S&P Global Market Intelligence.
Following some hotter-than-expected economic data, investors became concerned that the Federal Reserve will return to raising interest rates. Fed chairman Jerome Powell confirmed that more rate hikes will be needed to get inflation under control. As a company with very high levels of debt, Lumen is particularly sensitive to rising interest rates, and investors responded to the hawkish rate outlook by selling out of the stock.
While the Fed chose not to raise rates at its last meeting, it's now likely that the central bank will deliver more hikes this year. In addition to bearish news on interest rates, Lumen stock might have been primed for a pullback following the pop that it enjoyed last week.
Source Fool.com
