Core Scientific Stock Rises on Interest Rate Cut
Core Scientific, Inc. (CORZ) shares experienced a significant increase on Wednesday, coinciding with the Federal Reserve's first interest rate cut in four years. This positive movement reflects investor anticipation of the rate cut and its potential impact on risk assets like stocks and cryptocurrencies.
The Federal Reserve announced a 50 basis point cut, lowering the federal funds rate to a range of 4.75%-5%. This decision increased the appeal of risk assets, leading to a surge in Core Scientific's stock price. Throughout Wednesday's session, shares climbed, reaching an intraday high of $12.48 just after the announcement.
Earlier this month, Core Scientific CEO Adam Sullivan outlined plans to significantly expand the company's AI data center services. This expansion has the potential to boost the company's valuation to a range of $25 billion to $30 billion, further attracting investors.
Currently, Core Scientific shares are trading above their 50-day moving average of $10.05 and just below their 52-week high of $12.25. The stock closed Wednesday's session up 4.79% at $12.03.