What Happened?

Shares of financial services company Robinhood (NASDAQ: HOOD) jumped 3.7% in the morning session after investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge. 

As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. 

This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels. 

The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.

After the initial pop the shares cooled down to $122.24, up 3.1% from previous close.

Is now the time to buy Robinhood? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Robinhood’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 3.1% on the news that the company announced a suite of new products and features at its HOOD Summit 2025, drawing positive reactions and price target increases from Wall Street analysts. 

The fintech company unveiled a range of tools designed to deepen user engagement, including a social trading platform called 'Robinhood Social,' support for short selling, access to futures trading, and new artificial intelligence integrations. The announcements drew praise from analysts, with KeyBanc raising its price target on the stock to $135 and Mizuho lifting its target to $145. 

Adding to the growth narrative, Robinhood is expanding into sports betting by launching prediction markets for the NFL and college football. This news follows the company's recent inclusion in the S&P 500 index, which has also contributed to the stock's positive momentum.

Robinhood is up 210% since the beginning of the year, and at $122.24 per share, has set a new 52-week high. Investors who bought $1,000 worth of Robinhood’s shares at the IPO in July 2021 would now be looking at an investment worth $3,511.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.