BLND - Why did Upstart stock jump up today? Many fintechs rally
2023-06-01 16:21:18 ET
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.
Federal funds futures traders priced in a 77% chance of not 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.
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Why did Upstart stock jump up today? Many fintechs rally