Shares of artificial intelligence (AI)-based lending platform Upstart Holdings (NASDAQ: UPST) rallied 5.3% on Thursday, as of 1:44 p.m. ET.

The beaten-down fintech stock has fallen some 95% from all-time highs posted last year; however, with a lot of fear baked into the stock already, the stock is in rally mode as investors look for a path to recovery. The announcement of a closer partnership with one of its third-party credit unions is likely helping sentiment today as well.

Upstart is a financially sensitive stock, and investors seemed to take heart in some economic data this week that indicated inflation may be softening. Recent housing data showed home prices fell slightly in August, which could mean that shelter inflation -- a big part of the core consumer price index (CPI) -- could moderate in the future. Tuesday's Job Openings and Labor Turnover Survey (JOLTS) also showed a larger-than-expected decline of 1.1 million job openings, suggesting a cooling labor market.

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Source Fool.com