Why Upstart, Affirm, and Square Fintech Stocks Rallied on Monday
This year continues to be one for the record books -- and not in a good way. The trifecta of a bear market, 40-year-high inflation, and the potential for a recession have weighed on consumer and investor sentiment alike. With so much bad news, market watchers appear ready to seize on any bit of good news as a reason to bid up beaten-down stocks, and a positive reading on consumer spending sent many investors shopping for bargains.
That caused shares of a number of financial technology (fintech) companies to rally on Monday, as Upstart (NASDAQ: UPST) surged as much as 11.3%, Affirm Holdings (NASDAQ: AFRM) jumped as much as 10.5%, and Block (NYSE: SQ) rose as much as 5.5%. By the end of the trading day, the rally had reversed course. These three stocks, however, bucked the reversal, and as of the market close, the trio was still trading higher, up 1.4%, 3.4%, and 0.4%, respectively.
Numerous big banks reported earnings over the past several days, and as a whole, the results were stronger than expected. More importantly, management commentary pointed to the resilience of the consumer, suggesting that a recession is no longer a foregone conclusion.
Source Fool.com
