Of this week’s biggest gainers in financial stocks, three are Chinese-based fintechs that were helped by a preliminary agreement that allows U.S. authorities access to audit those companies. Of the five financial stocks that declined the most this week, three are tech-based mortgage or lending firms, that stand to lose business as interest rates rise.
Futu Holdings (NASDAQ:FUTU), up 21% for the week, tops the list of financial stocks with market cap over $2B that climbed the most, followed by peer Chinese fintech 360 DigiTech (NASDAQ:QFIN), which saw a 14% increase. Both benefit as the threat of the U.S. delisting their American depositary shares retreated.
Rounding out the five biggest financial climbers is Lufax (NYSE:LU), a Shanhai-based fintech that rose 10%.
By contrast, the financial stocks that fell the most for the week are all based in the U.S. Rocket Companies (NYSE:RKT), parent of Rocket Mortgage, dropped 13% in the past week.
During the week, mortgage rates rose to 5.55%, according to Freddie Mac. And there’s little chance that interest rates will drop as Federal Reserve Chair Jerome Powell vowed to keep raising rates and maintain them in restrictive territory until the central bank is convinced that inflation will decline to its 2% goal.
Also sliding was Upstart Holdings (NASDAQ:UPST), the AI-driven lending platform used by banks and financial institutions, which dropped 11%;
Goosehead Insurance (NASDAQ:GSHD), a personal lines insurance agency, fell 10%;
UWM Holdings (NYSE:UWMC), also known as United Wholesale Mortgage, slid 8.9%; and
Risk data firm Dun & Bradstreet (NYSE:DNB) dipped 8.5% for the week.
Image and article originally from seekingalpha.com. Read the original article here.