Financial stocks hurt by Fed’s dot plt during the week; insurers make gains (NASDAQ:GSHD)
With Federal Reserve policymakers increasing their expectations that interest rates will stay higher for longer put a damper on many lenders and a crytpocurrency exchange this week. Meanwhile, an analyst upgrade helped an insurance company climb the most of any financial stock with market cap over $2B for the week ended Sept. 22. Other insurers also rose.
The decliners were led by SoFi Technologies (NASDAQ:SOFI), the digital bank and personal finance app, which sank 17%.
Brazilian financial platform XP (NASDAQ:XP) dropped 11% in a week where the Brazilian real weakened 1.3% against the U.S. dollar.
Rocket Companies (NYSE:RKT), known for its Rocket Mortgage unit, fell 11% as high mortgage rates look likely to stay elevated, hurting the demand for mortgages.
Upstart Holdings (NASDAQ:UPST), which provides a lending platform to banks, is in a similiar situation. High rates mean consumers and businesses will be more hesitant to borrow. UPST stock dipped 10% for the week.
Selective Insurance Group (NASDAQ:SIGI) gained 5.4%.
Cboe Global Markets (BATS:CBOE) rose 5.3%.