SoFi Tech Shares Rise on Overnight Bounce Amid Rate Hike Uncertainty

Shares of SoFi Technologies Inc. (NASDAQ: SOFI) rose nearly 1% overnight following the Federal Reserve's decision to raise benchmark interest rates by 25 basis points on Wednesday.

The rate hike brought the target range to 3.75% to 4.00%, a move that largely aligned with market expectations.

Markets are now predicting another rate hike later in the year, adding uncertainty to the outlook for financial and lending companies like SOFI.

Despite this, analysts note that the rate environment may benefit SOFI's banking arm by widening the spread between loan rates and deposit costs, while also boosting deposit growth.