CARV Stock Price: Carver Bancorp inc surges over 600%, here is why
|- CARV Bancorp Inc is surging by over 600% and has yet to reach the 52-week high.
- Federal Reserve support is one of the potential drivers of NASDAQ: CARV.
- Interest in black-owned businesses following protests is another factor.
Carver Bancorp Inc. is benefiting from significant interest by investors. The NASDAQ traded financial firm is rising by over 600% to above $18, from a previous closing price of $2.41.
CARV stock news
The Federal Reserve is doing nearly everything to support the economy – including preventing a financial crisis – by encouraging loans and buying bonds. The Fed's recent announcement that it is getting into corporate bonds – purchasing debt directly – is boosting the sector.
Another potential upside driver is that Carver Bancorp is owned by African Americans. Businesses in minority communities were hit hard, as their customers suffered.
The unemployment rate among blacks leaped more than the average in the population. Minorities may find themselves in higher need to access PPP loans, one of the federal government´s measures to mitigate the economic fallout from coronavirus.
Small businesses will likely struggle to recover amid the crisis. While states may officially open their economies, consumers have less cash to spend – despite the special unemployment benefits. Moreover, the health issue is far from resolved and may keep shoppers away from stores.
However, recent protests against racial discrimination – following Goerge Floyd's death at the hands of the police, may encourage blacks to support businesses in their community.
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