Fintech stocks down after Fed warns of higher interest rates for longer

Happen

21/09/2023 17:09

** Shares of fintech companies fall, a day after the U.S.
Federal Reserve kept its benchmark interest rate unchanged but
suggested it could do one more hike by the end of this year
    ** Consumer lender LendingClub  LC.N  down 6.6%, payment
firms Block Inc  SQ.N  and PayPal Holdings  PYPL.O  down 3.5%
and 3.1%, respectively 
    ** Profitability at these companies is closely tied with
consumer spending strength, and Fed fired warnings that the
battle against inflation was far from over 
    ** However, it hinted at fewer rate cuts in 2024 than
previously expected
    ** U.S. jobless claims unexpectedly fell last week, while
the Philadelphia Fed's business conditions index reading showed
a worse-than-expected drop in September, fueling recession
concerns
    ** Nasdaq slides over 1% on Thursday as growth stocks fall
after hawkish Fed drives up yields


 (Reporting by Pritam Biswas in Bengaluru)
 ((Pritam.Biswas@thomsonreuters.com))