Stock Market Today, Jan. 5: Nu Holdings Sets New High

Nu Holdings (NYSE:NU), a Latin American digital banking firm, finished Monday at $17.94, up 5.41% after setting a new intraday record. Monday’s trading highlighted investor focus on Latin American fintech growth as we move into a new year.

Nu Holdings IPO'd in 2021 and has grown almost 60% since going public. Trading volume today reached 67.9 million shares, coming in about 87% above its three-month average of 36.9 million shares.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) added 0.64% to finish at 6,903, while the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.69% to 23,396. Among digital banking peers, Itaú Unibanco (NYSE:ITUB) and Banco Bradesco (NYSE:BBD) both posted gains as investors assess the potential in Brazilian financial services.

What this means for investors

Nu Holdings, which is up almost 64% in the past year, set a new intraday high of $17.85 today. Investors are optimistic after its Q3 earnings beat analyst expectations last year. Analyst sentiment continues to be upbeat. The company's continued expansion into Mexico and Colombia demonstrate its ability reach underbanked customers at scale.

Nu Holdings is also making progress toward gaining its Brazilian banking license. At the end of last year, Brazilian regulators said that non-banks could not use the word "bank," presenting a challenge for its flagship, Nubank. With over 110 million customers in Brazil, the firm is eying the acquisition of a small Brazilian bank in order to comply with new regulations.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.