Why Shares of PayPal, Upstart, and Wells Fargo Are Falling Today
Shares of several banks and consumer-facing finance companies fell today after a key gauge for inflation came in hotter than expected this morning, sinking the broader market. The Dow Jones Industrial Index had fallen roughly 775 points as of this writing and the Nasdaq Composite was down more than 3.5%.
Shares of PayPal (NASDAQ: PYPL) had fallen nearly 6.4% at 11:50 a.m. ET today. Shares of the artificial intelligence lender Upstart (NASDAQ: UPST) traded nearly 6.7% lower, and shares of Wells Fargo (NYSE: WFC) were down 5.8%.
Investors were anxiously awaiting new data from the U.S. Bureau of Labor Statistics' closely watched Consumer Price Index (CPI), which tracks prices across a variety of consumer daily goods and services. In May, the CPI rose 8.6% year over year, its highest increase since December of 1981. Economists had only been expecting an 8.3% increase. Furthermore, the new data put a hole in some investors' beliefs that inflation had peaked.
Source Fool.com
