Why SoFi, Upstart, and Affirm Plunged Today
Shares of fintech up-and-comers SoFi Technologies (NASDAQ: SOFI), Upstart (NASDAQ: UPST), and Affirm (NASDAQ: AFRM) plunged on Friday, ending the session down by 6%, 8.5%, and 10%, respectively.
All three companies had previously been up quite strongly for the week following last week's better-than-feared retail sales report. However, on Friday, S&P Global released the results of its Purchasing Managers' Index (PMI) survey for July, which showed a large deterioration in the state of U.S. manufacturing. That result re-intensified the market's recession fears, sending the major indexes lower and taking these economically sensitive stocks down even more sharply.
S&P Global's PMI survey for July came in with a surprisingly bad 47.5 reading, down from 52.3 in June. Any reading below 50 indicates a contraction, which means that at least parts of the U.S. services and manufacturing economy could be headed for a recession. Additionally, S&P's PMI reading for the Eurozone slid from 52.0 last month to 49.4 in July.
Source Fool.com
