UPST - Why did Upstart stock soar today?

Upstart ( NASDAQ: UPST ) shares surged 17.6% on Wednesday as stock-market speculators appeared greatly cheered by July's softer-than-expected inflation data .

The bullish upswing in Upstart ( UPST ) stock, though, comes a day after the artificial intelligence-powered consumer lending platform withdrew its full-year guidance, as "the macro uncertainty and the impact of economic stress on consumer delinquencies have led to a decrease in available funding for loans on our platform, which has become the operating constraint of the business," Sanjay Datta, the Upstart's CFO, said during the company's Q2 earnings call .

Perhaps Upstart ( UPST ) caught a bid intraday as traders priced in a greater chance of less aggressive interest-rate increases at the Federal Reserve's upcoming gathering on September 21. That's a bullish catalyst for companies because their borrowing and funding costs could see some relief from current levels, especially if the central bank eventually decides to pivot away from monetary tightening depending on whether inflation cools down more.

Fintechs, which generally fare well in a stimulative, lower-rate environment (smaller loan losses), experienced a broadly rally, with some of the biggest percentage gainers including Lightspeed Commerce ( LSPD ) +10.2% , Block ( SQ ) +9.5% , Rocket Companies ( RKT ) +7.8% and LendingTree ( TREE ) +7% .

Earlier this week, (August 8) Upstart provided soft Q3 guidance, Q2 earnings miss on funding constraints .

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