Stock Market Today, Jan. 20: Nu Holdings Rises as Brazilian Banks Attract Spotlight

Nu Holdings (NYSE:NU), a digital banking services provider in Latin America, closed Tuesday at $16.97, up 2.23%. The stock moved higher on continued optimism about its growth prospects and expansion plans.

Trading volume reached 74.1 million shares, coming in about 102% above its three-month average of 36.6 million shares. Nu Holdings IPO'd in 2021 and has grown 50.84% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 2.06% to 6,797, while the Nasdaq Composite (NASDAQINDEX:^IXIC) declined 2.39% to 22,954 as growth shares broadly lost ground. Within digital banking, peers moved more modestly, with SoFi Technologies (NASDAQ:SOFI) closing at $25.49, up 0.21%, and Ally Financial (NYSE:ALLY) ending at $42.41, down 0.27%.

What this means for investors

Nu Holdings recovered slightly today, though it is still down 0.41% in the past week. News that Triasima Portfolio Management had cut its stake by almost 40% during Q3 reflected shifting institutional interest. Other firms, such as Dynasty Wealth Management and Americana Partners, recently increased their positions.

There were no major drivers behind today’s gains. However, news that PicPay, another Brazilian digital bank, planned to IPO in the U.S. may have heightened interest in the sector.

Nu Holdings is expanding rapidly, with digital banking services in Brazil, Mexico, Colombia, and the Cayman Islands. Last year, it applied for a U.S. national bank charter. The company’s Q4 earnings are due on Feb. 25.

Ally is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.