Circle Internet Stock (CRCL) Surges 17.8% Amid Fed Rate Cut Speculation

Shares of Circle Internet Financial (CRCL) soared 17.8% on Thursday, outpacing modest gains in the S&P 500 and Nasdaq Composite. The rally followed mixed economic data that heightened expectations of Federal Reserve rate cuts.

August's CPI inflation reading exceeded forecasts, but the market focused on unexpectedly high weekly jobless claims—the worst since October 2021. This tension creates a dilemma for Fed Chair Powell, though traders now anticipate prioritization of employment concerns over inflation.

Lower interest rates typically benefit risk assets like cryptocurrencies and growth stocks. Circle, as a major stablecoin issuer, stands to gain from potential capital inflows into digital assets. Despite remaining 50% below its post-IPO peak, the company's valuation continues reflecting optimistic crypto market projections.