RKT Stock Price: Rocket Companies Inc set to bounce from support amid potential for increased lending

  • NYSE: RKT is set to bounce after hitting critical support.
  • Rising coronavirus cases could push the Federal Reserve to lower long-term rates.
  • Fiscal stimulus could also encourage taking loans.

Rockets that go to outer space launch from the ground – will that be the case for Rocket Companies Inc? The Detroit-headquartered firm may be ready for lift-off.

NYSE: RKT shares have closed at $20.01 on Wednesday, some 2.68% lower and at the trough recorded in late September. After hitting a bottom in October, Thursday's pre-market trading is pointing to a bounce of over 2%.

The Detroit-based financial firm has reasons to rise.

RKT Stock Forecast

Coronavirus cases are rising in Rocket's home state of Michigan and in its cold neighbors such as Wisconsin and Illinois. The lending company operates across America and hospitalizations are rising in the south and also in the greater New York area.

Why is COVID-19 a positive factor for NYSE: Rocket? An increase in infections could dampen economic forecasts and push the Federal Reserve to provide additional monetary stimulus. As the Fed is unenthusiastic about setting negative rates, it could increase its bond-buying operation and lower long-term borrowing costs, such as mortgages.

While lower rates could narrow Rocket's margins, which could be compensated by a higher volume of activity coming from people taking advantage of falling borrowing costs.

Moreover, Democrats and Republicans in Washington could finally sign off on a new fiscal relief package. The increase in infections could push the parties toward a deal even in the "lame-duck" session – between the elections and the inauguration of a new president and Congress. 

In turn, a boost from the federal government could also encourage individuals and companies to lend money for recovery and expansion. That applies to all states, regardless of their caseload or political leanings, benefiting Rocket Companies Inc's business. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 


GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.


XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info