Carvana and Chewy Stocks Trade Down, What You Need To Know

What Happened?

A number of stocks fell in the afternoon session after the Federal Reserve voted unanimously to hold its benchmark rate at 3.5%–3.75%, where it has been anchored since the central bank eased by three-quarters of a point in late 2025, while its dot plot pointed toward a potential hike, not a cut.

That signal matters acutely for a sector (Online Retail) that increasingly depends on buy-now-pay-later and consumer credit to drive transaction volume. These financing products are funded at rates tied to the short end of the yield curve; when the Fed's own projections suggest those rates may rise, the cost of offering consumer credit rises with them, eventually narrowing credit limits or tightening terms at checkout.

A stronger dollar also weighed on the international revenue that platforms like Amazon depend on for growth. The easing cycle of 2025 had created room for e-commerce volume to expand; the FOMC outcome narrowed that room considerably.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Online Retail company Carvana (NYSE:CVNA) fell 9.5%. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
• Online Retail company Chewy (NYSE:CHWY) fell 4%. Is now the time to buy Chewy? Access our full analysis report here, it’s free.

Zooming In On Carvana (CVNA)

Carvana’s shares are extremely volatile and have had 38 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 2 days ago when the stock gained 9.8% on the news that the Trump administration announced a new peace deal that would lead to the reopening of the Strait of Hormuz. 

Online retail companies operates on margins particularly sensitive to logistics costs. Fuel surcharges applied by carriers move directly with diesel prices; with oil down more than 5%, those charges are expected to ease. Inbound freight from Asia, repriced upward since the Hormuz rerouting disrupted trans-oceanic shipping in February, also begins to normalize. On the demand side, lower petrol prices redirect household spending from the pump toward discretionary purchases, the categories online platforms specialize in.

Carvana is down 20.8% since the beginning of the year, and at $63.38 per share, it is trading 33.8% below its 52-week high of $95.69 from January 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Carvana’s shares 5 years ago would now be looking at an investment worth $1,088.

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