D.R. Horton Inc. rallied toward a record high Wednesday as investors bet that the home-building giant will benefit from an eventual pause in the Federal Reserve’s cycle of interest-rate increases.
(Bloomberg) — D.R. Horton Inc. rallied toward a record high Wednesday as investors bet that the home-building giant will benefit from an eventual pause in the Federal Reserve’s cycle of interest-rate increases.
The company’s shares reached an intraday record high before paring the advance to close up 1% at $109.63, just below the April 28 all-time closing high of $109.82.
Real estate investors snapped up shares in the wake of the Fed’s decision to lift rates for a 10th straight time Wednesday. Officials also omitted a line from their March statement saying the central bank “anticipates that some additional policy firming may be appropriate.”
The S&P Composite 1500 Homebuilding Index advanced 0.8%, while the policy-sensitive two-year Treasury yield tumbled.
Investors were focused on commentary from Fed Chair Jerome Powell, weighing his remarks against the strains in the housing market, as he suggested his forecast is for US growth and not a recession.
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