Upstart Holdings (NASDAQ:UPST)
Upstart Holdings (NASDAQ:UPST), an artificial intelligence (AI) driven loan platform, saw its stock price rise sharply in the first minutes of trade today. The recent inflation data was not positive, and investors sold their Upstart stock rapidly.
At 11:45 a.m. ET, the fintech stock had dropped by 5.2%.
What’s the Reason?
More than the 0.3% predicted by experts, the Consumer Price Index climbed by 0.4% in September, according to data published yesterday by the Bureau of Labor Statistics.
More bad news: new data indicated today that consumers’ spending was flat in September due to increasing prices and borrowing rates.
After hearing all that news, Upstart stock investors are probably worried about the whole economy.
Investors are concerned that Upstart Holdings (NASDAQ:UPST) operations would stall if the Federal Reserve follows through with plans to increase interest rates at their next meeting (in November).
It’s also possible that the economy may decline considerably if the Fed keeps raising interest rates at a rapid clip. Upstart Holdings (NASDAQ:UPST) lending business might also take a hit if this occurs.
What’s Next?
Potential buyers of growth companies like Upstart stock are waiting for further evidence that the market has stabilized.
As opposed to trying to time the market, long-term investors should consider whether or not they have faith in the underlying fundamentals of the equities they are considering buying.
That might involve patiently waiting for the market to re-establish its bullish outlook on growth firms before selling your Upstart stock if you’re an owner.
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Upstart stock is declining today due to recent inflation and consumer spending reports.
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Author Shariq Khan 
