Why Upstart, Affirm, and SoFi Stocks Are Falling Today
Shares of Upstart Holdings (NASDAQ: UPST), Affirm Holdings (NASDAQ: AFRM), and SoFi Technologies (NASDAQ: SOFI), were all sliding Wednesday after a new government report showed that inflation continues to rise, despite the Federal Reserve's efforts to bring it down.
Investors are getting increasingly worried that with inflation stubbornly high, the Federal Reserve will have to continue aggressively hiking benchmark interest rates. And as that happens, the potential for a significant economic slowdown or a recession grows, which would be bad news for fintechs. As of 1:39 p.m. ET, Upstart was down by 4.4%, Affirm had dipped by 6.4%, and SoFi was off by 0.5%.
The Bureau of Labor Statistics released its much-anticipated inflation report Wednesday morning, revealing that the Consumer Price Index spiked by 9.1% year over year in June, higher than the 8.8% increase some economists had been expecting.
Source Fool.com
