Fintech and payment stocks are climbing in Thursday trading as investors appear willing to shoulder some risk in the second-to-last trading session of the year.
The week’s increase in jobless claims may have assured market participants that the Federal Reserve will continue to dial down the size of its rate increases. The CME FedWatch tool now puts a 71.8% probability on a 25-basis point rate hike in February, less than the 50-bp increase in December.
Global X FinTech Thematic ETF (NASDAQ:FINX) rose 3.9% in midafternoon trading, putting it on track for its biggest single-day gain since Nov. 11.
Payment names PaySafe (NYSE:PSFE) jumped 13% and Lightspeed Commerce (NYSE:LSPD) climbed 11%. Other fintech and payment stocks turning in strong performances are Affirm Holdings (NASDAQ:AFRM), +7.2%, Block (NYSE:SQ) +5.8%, Bill.com Holdings (NYSE:BILL) +4.9%, and Nerdwallet (NASDAQ:NRDS), +5.4%.
Thursday’s performance contrasts with the fintech slump that lasted through the year. Affirm (AFRM) sank 91% in the past eyar, Paysafe (PSFE) sank 73%, and Lightspeed (LSPD) tumbled 69%.
Shift4 Payments (NYSE:FOUR) stock gained 5.4% after Piper Sandler assumed coverage of the stock with an Overweight rating. Its shares have jumped 24% in the past month and fell only 7.0% in the past year.