HomeMarket NewsFinancial stocks hurt by Fed's dot plt during the week; insurers make...

Financial stocks hurt by Fed's dot plt during the week; insurers make gains

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The financial industry took a hit this week as Federal Reserve policymakers indicated that interest rates are likely to remain high for a longer period of time. This news dampened the spirits of many lenders and a cryptocurrency exchange. However, the insurance sector saw some positive movement with one company, in particular, benefiting from an analyst upgrade.

Overall, financial stocks experienced a decline due to the β€œhawkish pause” by the Fed on Wednesday. The Financial Select Sector SPDR ETF (XLF) dropped 3.3% for the week, surpassing the S&P 500’s 2.9% decline.

The biggest losers in the financial industry included SoFi Technologies (NASDAQ:SOFI), which saw a 17% decrease, and Coinbase (NASDAQ:COIN), the crypto exchange, which slid 14%. These declines were influenced by the Fed’s announcement of fewer projected rate cuts next year.

In addition, Brazilian financial platform XP (NASDAQ:XP) dropped 11% as the Brazilian real weakened against the U.S. dollar. Rocket Companies (NYSE:RKT), known for its Rocket Mortgage unit, fell 11% due to predictions of sustained high mortgage rates that could impact the demand for mortgages. Upstart Holdings (NASDAQ:UPST), a lending platform, also faced challenges as hesitant consumers and businesses were less likely to borrow, resulting in a 10% decrease in stock value.

However, it wasn’t all bad news for the financial industry. Goosehead Insurance (NASDAQ:GSHD) experienced a 5.7% increase in stock value after being upgraded to Outperform by BMO Capital Markets. Selective Insurance Group (NASDAQ:SIGI) gained 5.4%, Cboe Global Markets (BATS:CBOE) rose 5.3%, Allstate (NYSE:ALL) increased by 4.9%, and Assurant (NYSE:AIZ) advanced by 4.6%.

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