SoFi Shares Rally 3.57% on Fed Rate-Cut Hopes and Strategic Advances

Lead: SoFi Technologies stock climbed 3.57% to close at $28.11 on September 19, driven by investor optimism over potential Federal Reserve rate cuts and recent strategic initiatives.

Nut Graf: The rally reflects renewed market confidence in SoFi’s growth trajectory, fueled by macroeconomic expectations for looser monetary policy and the company’s expansion into AI-enabled services and underwriting roles.

Market Reaction

• Closing price: $28.11, up $0.97 (3.57%)
• Intraday high: $28.58; trading volume: 72.75 million shares
• Extended trading added another 0.49% to $28.25 by 8 PM EDT

Drivers of the Rally

• Fed Rate-Cut Expectations: Investors priced in a 25-basis-point reduction at the Fed’s upcoming meeting, anticipating lower borrowing costs to boost SoFi’s refinancing and lending activities.
• Strategic Business Advances:
• Underwriting Instacart’s IPO, marking SoFi’s growing presence in capital markets
• Launch of an AI-powered ETF, underscoring the company’s push into advanced fintech solutions
• Institutional Confidence: White Wing Wealth Management added a new $187,000 position in SoFi shares, signaling faith in the firm’s outlook and guidance for FY 2025 EPS of $0.31.

Outlook

With Fed policy expected to turn more accommodative, SoFi stands to benefit from increased loan demand and reduced funding costs. Continued execution on strategic partnerships and AI-driven products should keep investor sentiment elevated as the company rolls out second-half initiatives.