SOFI - Here's Why SoFi Ally Financial and Capital One Stock Jumped Higher Last Month
2024-01-10 14:38:00 ET
December was a big month for consumer finance stocks. Capital One (NYSE: COF) rose 17.4%, Ally Financial (NYSE: ALLY) rose 19.5% and SoFi (NASDAQ: SOFI) charged 36.5% higher during the month, according to data provided by S&P Global Market Intelligence .
The financial sector got a huge boost following the Federal Reserve's Open Market Committee (FOMC) meeting on Dec. 13. The Fed's commentary indicated that it is likely done with its aggressive interest rate hikes, and that rate cuts are a strong possibility in 2024. SoFi, Capital One, and Ally stocks all launched higher following the central bank's statements. Increased interest rates have curbed demand for their consumer financial products, so the latest news on monetary policy was a welcome signal that conditions are likely to improve over the next few quarters. The stocks rallied on that optimism in unison.
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Here's Why SoFi, Ally Financial, and Capital One Stock Jumped Higher Last Month