NU and RDFN are pulling back from their respective peaks
The Federal Reserve's first interest rate cut in four years came in at 50 basis points. Redfin Corp (NASDAQ:RDFN) and Nu Holdings Ltd (NYSE:NU) both stand to benefit from lower interest rates, so let's take a look at how these stocks are performing below.
RDFN was last seen down 2.2% to trade at $13.91, brushing off a price-target hike from Piper Sandler to $7 from $4. The real estate concern notched a 52-week high of $14.75 earlier after a steady climb over the past few weeks, and appears to be finding support at $13.50. Shares have added 131.1% this quarter, and boast a 34.8% year-to-date lead.
Redfin stock also looks ripe for a short squeeze. Short interest added 5.2% in the most recent reporting period, yet the 20.62 million shares sold short account for 17.7% of the equity's available float.
NU is cooling off as well, down 1.2% to trade at $14.96 at last check, despite earlier matching yesterday's record high of $15.16. This peak followed a bounce off previous resistance at the $13.50 level. The bank name now sports a 106.4% year-to-date lead.
An unwinding of pessimism in the options pits could boost NU. This is per the stock's 10-day put/call volume ratio of 1.41 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 93% of readings from the past year.