Shares of KE Holdings Inc. (NYSE: BEKE) soared 23.49% on Wednesday, outperforming the broader market amid growing optimism surrounding the housing sector. The rally came as investors reacted positively to the potential impact of recent Federal Reserve interest rate cuts on the real estate market.
The Federal Reserve's decision to cut interest rates by 50 basis points earlier this month is expected to have a positive effect on the housing market. Lower mortgage rates could spur more homebuyers to enter the market, increasing demand for real estate services provided by companies like KE Holdings.
KE Holdings, which operates the Beike integrated online and offline platform for housing transactions and services in China, reported strong second-quarter results, with revenue growth across its main business segments. The company's net income also rose 46.2% year-over-year, demonstrating resilient profitability.
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