Global Industrial Company (GIC) shares are experiencing a decline in after-hours trading, influenced by the Federal Reserve's recent policy decisions. The Fed's announcement of a 0.25% rate cut, bringing the federal funds rate to 4.25% - 4.5%, was accompanied by a more cautious outlook for 2025, with only two rate cuts projected instead of the previously anticipated four. This hawkish stance has led to increased market volatility, with bond yields rising and stocks, including GIC, moving lower as investors reassess their positions in light of the Fed's updated economic projections.
Additionally, the restructuring of the GICS stock/index, which is set to occur after market close, is causing fund managers to reallocate their portfolios. This reallocation process can lead to increased selling pressure on stocks like GIC, as fund managers adjust their holdings to align with the new index structure. The combination of these factors is contributing to the downward pressure on GIC's stock price in after-hours trading.
GIC's stock is down 1.55% to $24.81 in after-hours trading, following a close at $25.20 on December 20, 2024.