What Happened?
Shares of specialized talent solutions company Robert Half (NYSE: RHI) jumped 5.3% in the afternoon session after Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts. The broader market surged after Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole Economic Policy Symposium, indicated that interest rate cuts could be on the horizon. This signal was a significant relief for investors, leading to a major rally, with the Dow Jones Industrial Average jumping over 900 points and the S&P 500 and Nasdaq also seeing substantial gains. This positive market sentiment provided a strong tailwind for many stocks, including Robert Half.
After the initial pop the shares cooled down to $37.71, up 4.9% from previous close.
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What Is The Market Telling Us
Robert Half’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock gained 4.8% on the news that stocks continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.
Robert Half is down 45% since the beginning of the year, and at $37.71 per share, it is trading 50.9% below its 52-week high of $76.80 from November 2024. Investors who bought $1,000 worth of Robert Half’s shares 5 years ago would now be looking at an investment worth $671.03.
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