SOFI - Why SoFi Technologies Bank of America and Fifth Third Bancorp Stocks Rallied on Wednesday
2023-12-14 07:39:39 ET
Shares of several bank stocks rallied on Wednesday after U.S. Federal Reserve officials signaled an end to the central bank's rate hikes. When all was said and done on Wednesday, SoFi Technologies (NASDAQ: SOFI) was up 12.5%, Bank of America (NYSE: BAC) had risen 4.2%, and Fifth Third Bancorp (NASDAQ: FITB) closed up 6% for the session. Several other major bank stocks followed suit with more conservative pops amid a broader market rally; both the S&P 500 and Nasdaq Composite indexes jumped more than 1.3% on Wednesday.
In the U.S. Federal Reserve's final meeting of 2023, Fed officials opted to leave the central bank's benchmark interest rate flat at a targeted range of between 5.25% and 5.5%. This was the third straight monthly decision in which rates were left unchanged -- albeit following an unprecedented cycle of 11 rate hikes since the Fed began raising rates in March 2022.
What's more, policymakers on the Federal Open Market Committee signaled on Wednesday there will be at least three rate cuts in 2024, likely in quarter-percentage-point increments.
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Why SoFi Technologies, Bank of America, and Fifth Third Bancorp Stocks Rallied on Wednesday