CRCL Stock Seesaws Ahead of Fed Decision Amid Elevated Rate Hike Odds

Circle's stock (CRCL) closed at $90.60 on Friday, up 0.31%, as investors weighed the potential impact of a Federal Reserve rate hike against tighter financial conditions.

The stock traded between $90.14 and $95.80, showing demand but selling near the session high. It finished 7.53% lower for the week, although its monthly gain remained above 26%.

Meanwhile, markets assign an 86% probability to a quarter-point Federal Reserve increase at its September 15-16 meeting, following August's core inflation data exceeding forecasts.

A rate increase could support Circle's reserve earnings, which track yields earned on assets backing USDC and EURC. Circle reported $668 million in second-quarter reserve income, representing 95.2% of quarterly revenue.