In the late trading session on Thursday, April 7, 2022, the immune-oncology therapeutics developer, Exicure Inc. (XCUR) witnessed an upsurge. XCUR was among the penny stocks that made some gains as the Fed disclosed a tightening of monetary policy. Thus, the stock surged up by 18.37% in the after-hours to register a value of $0.2474 per share. This upsurge followed an increase of 3.47% in the prior session at $0.2090.
What’s going on?
On April 6, the Federal Reserve released minutes of its recent meeting which highlighted its plan to reduce the balance sheet by almost $95 billion per month. The monetary policymakers are planning strict measures against the rising inflation in order to curb it. The plan entails a 50 basis point increase in interest rates moving forward.
This increase in interest rates had been expected for months as inflation continued to peak. But the Russia-Ukraine conflict and prolonged impacts of the pandemic added to this rate increase has everyone worried. On one hand, some are suggesting a possible recession in the near future while others deem it highly unlikely to be the case. But one this is sure Wall Street is up for troubling times ahead.
Impact on Market and Penny Stocks
The news initially initiated a sell-off as the stock markets registered red values. However, on the plus side, investors rallied towards penny stocks to make some gains in a situation of market instability. Thus, a rebound was witnessed in the market on Thursday as many penny stocks like XCUR, HMY, and NILE among others traded in the green.
Penny stocks being priced below the $5 level while having a lesser margin for loss are highly volatile. But seasoned investors with a proper trading plan can secure good profits from single-digit stocks.
XCUR’s Analysis
The company faced many challenges in 2021, with the pandemic adding further to its woes. But the tough situation gave way to strategic realignment and refocusing on its business strategy for becoming cash efficient. The company hoped to enter 2022 with a better start but another blow came from many of its leading members resigning. In February certain members of its board as well as the new CEO of just two months submitted their resignations.
Conclusion
Despite the company’s relative financial crunch, XCUR is working tirelessly to improve its position. With certain preclinical programs in line for data by the end of the year and others for 2023, the company is actively pursuing partnering opportunities.
