In recent months, the stock market managed an impressive surge. Tech stocks, especially those with a connection to artificial intelligence (AI), have led the way.

This past month saw a similar surge among numerous beaten-down stocks in the financial sector. Among these, three consumer credit stocks stood out: Capital One Financial (NYSE: COF), Ally Financial (NYSE: ALLY), and One Main Financial (NYSE: OMF). These stocks gained 27%, 13%, and 21%, respectively, in the past month.

The surge in stock prices for all these companies reflects optimism among investors. This positive sentiment can be attributed to the ongoing slowdown in inflation, as measured by the year-over-year change in the consumer price index, and a recent pause by the Federal Reserve from its aggressive interest-rate increases.

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Source Fool.com