Financial Stocks Plummet After Federal Reserve Rate Hike

The stock market reacted strongly to last week's Federal Reserve hike, causing several financial stocks to trade down on Monday. The Fed raised the federal funds target range by 25 basis points to 3.75%-4.00% in its September 16 announcement.

This move was seen as a signal that interest rates will continue to rise, affecting consumer and business borrowing costs, loan demand, and credit quality. As a result, investors became cautious, driving down the prices of several financial stocks.

LPL Financial (LPLA), in particular, saw its shares drop 14.3% since the beginning of the year, trading at $310.02 per share and 21.2% below its 52-week high of $393.25 from February 2026.