New York, June 18, 2026, 06:05 EDT
- Nu Holdings shares were at $12.89 ahead of Thursday’s NYSE open, gaining roughly 1.3% from the previous close.
- Brazil’s central bank lowered the Selic rate to 14.25% on Wednesday. The U.S. Federal Reserve left its policy rate unchanged.
- Investors weigh Nu’s $1 billion buyback and falling Brazilian rates against rising credit-loss provisions, tighter margins and a CFO handoff.
Nu Holdings Ltd. shares climbed early Thursday in U.S. trading, getting a lift from Brazil’s new rate cut. Investors came back to the Latin American digital bank after a tough run for the stock.
NYSE-listed shares were indicated at $12.89, up 16.5 cents from the last close, in premarket quotes. The New York Stock Exchange had not started regular trading at the time of the dateline. Standard trading runs from 9:30 a.m. to 4 p.m. EDT. U.S. stock markets are scheduled to shut Friday for Juneteenth.
Timing is key. Nu, which owns Nubank, still has most of its business in Brazil, Mexico and Colombia. Its stock relies on investors believing it can grow its credit business while controlling loan losses.
Brazil’s central bank lowered its Selic benchmark rate by 25 basis points to 14.25% on Wednesday, matching expectations. A basis point equals one-hundredth of a percentage point. Officials said they remain cautious about inflation.
The U.S. rate environment didn’t provide much relief. The Federal Reserve kept the fed funds rate steady at 3.50% to 3.75% on Wednesday, saying inflation remains above its 2% target, blamed in part on energy supply shocks. Growth and fintech names stayed exposed to talk of “higher-for-longer” even as Brazil cut. Federal Reserve
Nu’s gain came as broader U.S. growth names struggled in premarket trade. SPDR S&P 500 ETF slipped roughly 1.2%, Invesco QQQ ETF dropped 1.0%, and SoFi Technologies, another U.S. fintech, lost about 1.7%. Shares in MercadoLibre, which runs a major fintech operation in Latin America, also traded lower.
Nu’s numbers have been strong. In May, the company reported first-quarter revenue over $5 billion for the first time, net income at $871 million, and a 29% return on equity. CEO David Vélez said at the time that Nu was “rebuilding banking around AI,” referring to artificial-intelligence tools used for things like credit decisions. Nu International
Nu has looked to support its shares with capital returns. The board signed off on a $1 billion buyback program on June 4, set to run 12 months. The company said this plan does not affect its spending on growth in Brazil, Mexico, Colombia and the U.S.
The pending CFO switch adds to the overhang. Rob Livingston, ex-Visa, will take over as chief financial officer on July 13. He’s replacing Guilherme Lago, who goes to an advisory role. Vélez said the company still has the same focus: “growth in our core markets,” AI, and tight expansion. Nu International
Still, risks are there. Susquehanna’s James Friedman downgraded Nu to Neutral from Positive earlier this month, pointing to slimmer operating margins, more spending, and a tilt to credit cards and unsecured loans. Provisions for bad loans climbed. If Brazil’s inflation stalls rate cuts, or if lower-income borrowers take a hit, Thursday’s rally may not hold.
Thursday’s trading could matter more, with U.S. markets shut Friday. Investors have just one session to judge if Brazil’s rate cut and Nu’s buyback balance out the Fed’s cautious tone and worries about the lender’s credit quality.
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