Flushing Financial Corporation (FFIC) shares are experiencing a decline today, largely influenced by broader market movements following the Federal Reserve's recent interest rate decision. On December 18th, the Fed announced a quarter-point rate cut, bringing the target range to 4.25%-4.50%. However, the central bank's projections indicated a slower pace of future rate cuts, which has unsettled investors. This cautious outlook, coupled with concerns over tariffs and a robust labor market, has led to a significant drop in major indices, including a 1.2% fall in the Dow Jones Industrial Average and a 2.03% decline in the Nasdaq Composite.
The broader market downturn is impacting financial stocks like Flushing Financial, as higher interest rates typically reduce the appeal of equities and can constrain earnings growth for companies in the sector. As of 3:43 pm on Wednesday, FFIC's stock is down 5.54% to $14.15, compared to its previous close of $14.98, and has fallen 6.6% from its opening price of $15.15.