Ambac Financial Group, Inc. (AMBC) shares experienced a decline in after-hours trading, influenced by broader market movements following the Federal Reserve's recent interest rate decision. The Fed cut rates by a quarter of a percentage point, but its projections indicated a slower pace of future cuts, which unsettled investors. This cautious outlook, coupled with concerns over tariffs and a strong labor market, contributed to a significant drop in major indices, including a 2% decline in the Nasdaq. The overall market sentiment weighed on Ambac's stock, as higher interest rates typically dampen equity markets by making risk-free assets more attractive and constraining corporate earnings growth.
Ambac's stock closed at $12.26, down 7.47% from the previous day's close of $13.25. In after-hours trading, the stock saw a further decline of 0.16%, bringing the current price to $12.24.