Why Shares of Upstart Are Falling Today
Shares of the artificial intelligence-assisted lending platform Upstart (NASDAQ: UPST) traded nearly 5.5% lower as of 2:33 p.m. ET today after some recent negative sentiment from Wall Street and as new inflation data came out this morning.
Upstart, which sells the bulk of its loans to investors, has been waiting for the Federal Reserve to stop hiking interest rates because the intense, rising interest rate environment has pretty much dried up the capital markets, forcing the company to slow originations.
This morning, new inflation data from the Consumer Price Index (CPI), which tracks the prices on a market basket of consumer goods and services, showed that inflation is indeed slowing. The CPI only rose 0.1% on a monthly basis in March and was only up 5% year over year after being up 9% year over year in the middle of 2022.
Source Fool.com
