Bank of America Stock Surges, SoFi Technologies and Fifth Third Bancorp Follow Suit

Shares of SoFi Technologies, Bank of America, and Fifth Third Bancorp rallied after the U.S. Federal Reserve signaled an end to rate hikes and projected at least three rate cuts in 2024. While higher interest rates are typically positive for banks, the Fed's decision to increase rates rapidly aimed to ease inflation and stimulate economic activity. SoFi Technologies, a digital-first fintech stock, stands out due to its technological foundations and lack of physical branches, attracting new customers and deposits. As rates decline, SoFi expects to hold rates longer and gain market share. Investors are optimistic about the prospects of bank stocks as the Fed's new rate cycle takes hold.