Why Upstart Stock Jumped 9% Today
Shares of lending software outfit Upstart (NASDAQ: UPST) rallied 9.1% today as of 2:35 p.m. ET. Don't let that jump fool you, though. It was another rough week for Upstart and fintech stocks in general after the U.S. Federal Reserve increased interest rates 0.75% in an attempt to beat back inflation. After today's rebound, the stock is down about 6% over the last five days.
As a reminder, higher interest rates tend to lower the present value of risk assets like stocks. That explains the recent market turmoil as it balances higher Fed rates against specific company growth prospects.
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Source Fool.com
