CAVA Group (CAVA) Climbs 12%, Mirrors Market Rally on Rate Cut Hopes

We recently published 10 Big Names Crushing the Market. CAVA Group Inc. (NYSE:CAVA) is one of the best-performing stocks on Friday.

CAVA Group Inc. (NYSE:CAVA) saw its share prices jump by 12.23 percent on Friday to close at $48.92 apiece as investor sentiment was generally bolstered by rising hopes of an interest rate cut next month.

This followed optimistic comments from Federal Reserve Bank of New York President and CEO John Williams, saying that he believes monetary policy would be “modestly restrictive” amid weak labor market data.

“I view monetary policy as being modestly restrictive, although somewhat less so than before our recent actions,” Williams said in his speech in Santiago, Chile

“Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals,” he noted.

Williams comments sparked hopes among investors despite Federal Reserve Chairman Jerome Powell already signaling earlier that a rate cut in December was not guaranteed.

Meanwhile, CAVA Group Inc. (NYSE:CAVA) rallied alongside its counterparts in the consumer sector following the news.

In other developments, CAVA Group Inc. (NYSE:CAVA) earlier this month reported mixed earnings results for the third quarter of the year, with net income dropping by 18 percent to $14.7 million from $17.97 million in the same period last year.

Revenues, on the other hand, rose by 19.77 percent to $292 million from $243.8 million year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.