Why Shares of Upstart Are Rising
Shares of the artificial-intelligence-focused lender Upstart Holdings (NASDAQ: UPST) had bounced nearly 10% as of 1:34 p.m. ET today for no obvious reason, although it appears to be rebounding from an up-and-down week that has had no shortage of volatility.
With the Nasdaq Composite up nearly 0.8% as of this writing, Upstart and other fintechs were outperforming the general tech sector after what has been an extraordinarily difficult last six months. Upstart is down roughly 62% in that time period.
The decline has much to do with the fast-changing macro outlook. The Federal Reserve has gone from viewing inflation as "transitory" to seeing it as a serious threat. Consumer prices in February, as measured by the consumer price index, rose 7.8% on a year-over-year basis, the highest level seen in 40 years. Additionally, high gas prices resulting from Russia's invasion of Ukraine could make things worse.
Source Fool.com
