Published on 19 Mar 2024 on Benzinga
AMC Entertainment Holdings Inc AMC shares are trading lower by 2.7% to $4.28 Tuesday afternoon. The marginal move lower comes without company-specific news for the session. Stocks across sectors are volatile ahead of Wednesday's Fed meeting and due to concerns about interest rates. The Federal Reserve Open Market Committee (FOMC) meeting starts on Tuesday and ends on Wednesday.
Like many companies, AMC relies on borrowing to fund its operations, expansion, and capital expenditures. Any indication of rising interest rates or tightening monetary policy could increase the cost of borrowing for AMC. This would potentially reduce its profitability and constrain its ability to invest in growth initiatives, such as opening new theaters or upgrading existing ones.