Dovish Fed commentary is helping financial stocks move higher today
On the heels of the Federal Reserve's dovish commentary, shares of financial firms SoFi Technologies Inc (NASDAQ:SOFI) and Charles Schwab Corporation (NYSE:SCHW) are making outsized moves. Meanwhile, semiconductor concern Intel Corporation (NASDAQ:SOFI) is getting a lift from artificial intelligence (AI) tailwinds.
SoFi Technologies Stock Doubles Year-to-Date Gain
At last glance, SOFI was up 5.2% to trade at $9.40. The stock is reacting to positive interest rate news, with Fed Chair Jerome Powell noting cuts are coming "into view." SoFi Technologies stock is up more than 106% in 2023.
Options traders could be helping drive this positive price action. So far today, 388,000 calls and 170,000 puts have been exchanged, which is four times the average intraday volume. New positions are opening at the most popular position, the December 10 call.
Charles Schwab's Higher Client Assets
While the Fed's stance is certainly boosting SCHW, the company also reported higher client assets, with the total coming in at $8.18 trillion as of the end of November. While shares were last seen up 6.7% at $70.77, they still carry a 14.6% year-to-date deficit.
Charles Schwab stock is seeing double the usual intraday options activity. So far, 56,000 bullish bets and 43,000 puts have swapped hands, led by the March 75 call, where new positions are being opened.
AI Chips Continue to Boost Intel Stock
Compared to SOFI and SCHW, Intel stock sports a more modes gain of 2.3%, which has it trading at $45.60 at last check. INTC is up 72.5% in 2023, thanks to its chips used in the emerging AI market.
Today's price action comes after company said dozens of computer makers are utilizing its latest chip. Plus, Intel showed the first working version of its Gaudi 3 chip, which may challenge Nvidia's (NVDA) products.
INTC's options pits have already seen 306,000 calls and 115,000 put traded already today. Most popular is the December 46 call, with new positions being opened there.