Biotech Stocks Dive Amid Slower Fed Rate Cuts

Biotech stocks experienced a significant decline following the Federal Reserve's announcement of a slower pace for interest rate cuts. The Fed's projection of only two rate cuts in 2025 due to persistent inflation and economic factors contributed to the market downturn. While the Dow, S&P, and Nasdaq also fell, the biotech index XBI and SPBIOS plummeted nearly 5%, and the Nasdaq biotechnology index dropped over 4.2%.

Experts attribute this sensitivity to interest rates due to the sector's continuous funding requirements. This news presents a challenge to biotech startups, as previous rate hikes in 2022 and 2023 led to decreased investments. While recent rate cuts have spurred a slight increase in investment, the current cycle is driven more by fear of missing out (FOMO) than by innovation. To break this cycle, more initial public offerings (IPOs) and mergers and acquisitions (M&A) are needed to provide investors with returns and liquidity, stabilizing the biotech market. However, sustained higher interest rates could impede these activities, making it harder for new startups to thrive and innovate

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

4 themes and 4 key biotech stocks for 2025: Jefferies4 themes and 4 key biotech stocks for 2025: Jefferies
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Top 2025 Biotech Stocks to Watch Beyond Vaccine MakersStocks Analysis by MarketBeat.com (Nathan Reiff) covering: Eli Lilly and Company, Pfizer Inc, AstraZeneca PLC ADR, Hims Hers Health Inc. Read MarketBeat.com (Nathan Reiff)'s latest article on Investing.com
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Three global stocks stocks to own in 2025, according to BarclaysBarclays named 'overweight-rated stocks in which our analysts have high conviction in 2025 and see value in owning on an individual basis.'
La source: CNBC - 🏆 12. / 72 Lire la suite »

CNBC Daily Open: U.S. stocks start December chilly; Korea stocks tumble on political chaosDecember may have triggered the thawing of Mariah Carey, but stocks are beginning the month chilly, though unlikely they’ll remain in permafrost this…
La source: NBCNewYork - 🏆 270. / 63 Lire la suite »

Wall Street stocks end lower after inflation data, tech stocks push Nasdaq downWall Street stocks end lower after inflation data, tech stocks push Nasdaq down
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Asia stocks dip as Nvidia brings little cheer; India slides amid Adani scandalAsia stocks dip as Nvidia brings little cheer; India slides amid Adani scandal
La source: Investingcom - 🏆 450. / 53 Lire la suite »