Stepstone Group shares climb 2.4% on Wells Fargo Overweight rating, new U.S. DC division, and rate-cut hopes

Stepstone Group shares rose 2.4% in afternoon trading after Wells Fargo initiated coverage with an Overweight rating and a $55 price target, marking a new vote of confidence for the stock. This brings the total number of buy-equivalent ratings on the stock to nine. The company also announced the appointment of Taylor Benson to lead a new U.S. Defined Contribution division, following the previous day's news that a ten-year veteran of Japan's Government Pension Investment Fund joined as Vice Chairman. The broader market provided a supportive backdrop, with the S&P 500 and Nasdaq rising after September job growth came in far below expectations, boosting hopes that the Federal Reserve will keep interest rates unchanged in October. Lower rate expectations are typically favorable for alternative asset managers like StepStone, whose valuations are sensitive to the interest rate environment. The stock regained some ground within a 52-week range stretching from a low of $38.85 to a high of $77.80.