SoFi Technologies Inc (NASDAQ:SOFI) shares are trading lower by 3.9% to $8.00 during Tuesday’s session. Shares of stocks in the broader financial sector are trading lower amid overall market weakness with concerns about future rate hikes following yesterday’s FOMC statement and lower-than-expected initial jobless claims data.
While SoFi is a financial technology company and not a traditional bank, it relies on lending and borrowing activities to facilitate its financial products. Rising interest rates can lead to higher borrowing costs for the company, impacting its margins and profitability.
Additionally, if interest rates rise, potential borrowers may be less inclined to take on loans, affecting SoFi’s loan origination volumes.
What’s Going On?
The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.
The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year…Read More
According to data from Benzinga Pro, SoFi Technologies has a 52-week high of $11.70 and a 52-week low of $4.24.
