For LendingClub and SoFi, a Rate Cut Rally Is Coming

Last week’s upbeat inflation report raised hopes that the Federal Reserve will start cutting interest rates in the fall, which will be good news for pretty much every business. But companies in the business of lending money—in particular digital lending firms such as LendingClub and SoFi—may be the stocks to get the fastest lift.

LendingClub and SoFi are both better bets than other digital lenders, such as Upstart Holdings, which trades at a premium thanks to perceptions that it’s more of a tech company. But given Upstart’s valuation, it arguably has less room to rally.