Home / Business and Economy / Rivian Shares Soar on Hopes for Potential Interest Rate Cuts
Rivian Shares Soar on Hopes for Potential Interest Rate Cuts
22 Aug
Summary
- Rivian shares jump 6.6% on broad market rally
- Positive sentiment driven by potential interest rate cuts
- Rivian's volatile stock has seen 33 moves greater than 5% in the last year
On August 22, 2025, shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) jumped 6.6% in the afternoon session, driven by a broad market rally fueled by hopes for potential interest rate cuts. The positive sentiment swept through Wall Street, with the S&P 500 and Dow Jones Industrial Average soaring after the head of the U.S. Federal Reserve hinted that rate cuts may be on the way.
This news often benefits growth-oriented companies like Rivian, which are sensitive to interest rate changes. Lower rates can reduce the cost of borrowing for capital-intensive expansion and make the company's future earnings appear more valuable to investors, leading to increased demand for the stock.
Rivian's shares are known for their volatility, having experienced 33 moves greater than 5% over the last year. In this context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Just 18 days ago, the stock gained 3.3% on the news that Rivian's U.S. sales hit a 10-month high in July, with the company recording over 4,200 vehicles sold, a 20% jump from June. This positive sales news arrived just a day before Rivian's second-quarter earnings announcement, where Wall Street expected the company to post a narrower loss per share and an 11.4% year-over-year increase in revenue to $1.29 billion.
