Opendoor Stock Surges 11.6% on Fed Rate Cut Hopes
A surprisingly weak U.S. jobs report fuels speculation that lower interest rates could soon boost the housing market.
Shares of Opendoor Technologies (NASDAQ: OPEN) jumped 11.58% on Thursday, as investors grew optimistic that a cooling labor market would prompt the Federal Reserve to cut interest rates sooner than anticipated.
The rally was ignited by a , which showed the U.S. economy added only 22,000 jobs, falling far short of the 75,000 economists had forecast. For a capital-intensive business like Opendoor, which buys and sells homes, the prospect of lower interest rates is a significant catalyst. A rate cut could reduce the company's costs for financing its housing inventory and stimulate broader activity in the real estate market.
Thursday's gain marked the sixth straight day of advances for the stock, which has rallied over 65% during that period. This renewed momentum follows a series of internal changes aimed at improving shareholder confidence. Recent , including the resignation of former CEO Carrie Wheeler and the cancellation of a proposed reverse stock split, have been received positively by the market.
Investor sentiment was also bolstered by an insider share purchase from Interim President Shrisha Radhakrishna and discussions about potentially appointing co-founder Keith Rabois to the board, signaling a strategic focus on growth. While the company's performance remains highly sensitive to macroeconomic shifts, the combination of potential monetary easing and internal restructuring has created a powerful tailwind for Opendoor's stock.