Why did Upstart stock jump up today? Many fintechs rally
Jun. 01, 2023 4:21 PM ET
Upstart Holdings, Inc. (UPST) LC, LDI, RKT, BLND
By: Max Gottlich, SA News Editor
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Upstart Holdings (NASDAQ: UPST) stock ended Thursday's session 9.2% higher as traders raised their expectations for no interest-rate hike at the rate-setting Federal Open Market Committee's June 13-14 meeting.
A slew of fintech stocks caught a bid, including Blend Labs ( BLND) +3.1%, LendingClub ( LC) +1.1%, loanDepot ( LDI) +2.7% and Rocket Companies ( RKT) +1%, though UPST, which provides lending platforms for banks and other financial institutions, was among one of the biggest winners. To be sure, all three major U.S. stock market indices closed comfortably in the green.
Federal funds futures traders priced in a 77.3% chance of no rate hike in June, up from 73.6% a day ago and 48.3% in the prior week, according to CME's FedWatch tool, as Philadelphia Fed President Patrick Harker called for skipping an increase.
While a skip does not necessarily mean that rate hikes will not come back to effect, the potential for such a move offers some relief in the sense that consumers and business are less likely to borrow in a higher rate environment. |
