CrowdStrike Holdings, Inc. (CRWD) shares popped Monday after Federal Reserve Governor Christopher Waller threw his support behind another interest rate cut at the central bank's upcoming December meeting.
What's Behind the Move
Waller made it clear Monday that he's in favor of additional easing, pointing to concerns about the labor market and what he described as a sharp slowdown in hiring. According to Waller, months of deteriorating conditions mean it's unlikely that any new data between now and the Fed's December meeting would change his mind about the need for another cut.
His comments put him squarely in the camp of Fed officials pushing for more cuts, even as some policymakers have recently pushed back over worries that loosening monetary policy too much could reignite inflation. Waller, however, said he's not worried about inflation heating up again. He noted that price data suggests tariffs won't have a lasting impact on inflation levels.
Waller signaled support for another quarter-point reduction, arguing it would help the Fed manage risks as the labor market weakens and provide some insurance against further deterioration. He also pointed out that restrictive monetary policy is hitting lower- and middle-income consumers particularly hard.
The Federal Open Market Committee is scheduled to meet December 9 to December 10.
Why Tech Stocks Like CrowdStrike Benefit
Software and other growth stocks climbed following Waller's remarks as expectations for lower borrowing costs increased. Rate-sensitive tech names tend to benefit from monetary easing because reduced discount rates make their long-term growth profiles more attractive to investors.
Price Action: At the time of writing, CrowdStrike shares were trading 3.25% higher at $506.56, according to data from Benzinga Pro.
