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Upstart Holdings (NASDAQ:UPST) stock fell 5.9% in Friday trading as all three major U.S. stock average indices turned red in afternoon trading. In general, investors sought to shed risk after Gazprom said its Nord Stream pipeline that supplies Europe with natural gas can’t reopen due to technical reasons.
Another factor could be the solid August U.S. jobs report isn’t likely to spur the Federal Reserve to slow its pace of aggressive rate hikes. Traders see a 56% probability of another 75 basis point rate hike when the central bank meets Sept. 20-21. That would bring the key interest rate to 3.00%-3.25%. The higher that rate rises, the more banks and other lenders will ratchet up interest rates on loans, which will make it more expensive for consumers and businesses to borrow money.
Upstart’s (UPST) artificial intelligence-driven lending platform is used by banks and credit unions to determine the likelihood that prospective borrowers will repay loans.
Before today’s weakness, the stock had risen 8.4% in the past month. Year-to-date, though, Upstart (UPST) has plunged 83%.
Previously (Aug. 9), Upstart (UPST) stock dropped after the company withdrew guidance and pivoted on loan funding strategy.
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