These stocks got incredibly cheap amid the e-commerce recession and strong dollar. But the hint of a trend reversal is sending them soaring today.
Farfetch Limited (FTCH) closed the most recent trading day at $7.45, moving -1.32% from the previous trading session.
Investors still seemed spooked after Federal Reserve Chairman Jerome Powell essentially told Wall Street that the central bank would continue to raise interest rates until inflation was brought to heel even if it meant rising unemployment and a recession. E-commerce stocks like Wayfair (NYSE: W), Farfetch (NYSE: FTCH), and Global-E Online (NASDAQ: GLBE) were on the decline today as the sector is exposed to rising rates in multiple ways. Finally, higher interest rates have also made the dollar stronger against international currencies, a challenge for global companies like Farfetch and Global-E Online, as dollar-denominated earnings for international companies are worth less when the dollar is strong.