What happened
Shares of Upstart Holdings (UPST +4.93%), an artificial-intelligence-based lending platform, were rising this morning, on no company-specific news. Some investors may be snatching up shares of the company after the stock has experienced a massive sell-off over the past few months.
The tech stock was up by 10.6% as of 10:34 a.m. ET.
So what
Many investors have been exiting their positions in more speculative investments over the past few months as they've grown concerned about rising inflation and the potential that the Federal Reserve will soon begin to raise interest rates.
Image source: Getty Images.
Inflation in the U.S. is at a 40-year high right now and the Fed has indicated that it will start raising interest rates as soon as next month to start curbing inflation.
Technology stocks, in particular, have tumbled on these concerns over the past several months, with the tech-heavy Nasdaq Composite falling about 12% -- and Upstart's share price falling 30% over the same period.
But some investors are likely viewing the recent share plunge as a buying opportunity and are now buying some shares of Upstart today.
NASDAQ: UPST
Key Data Points
Now what
Upstart Holdings investors are no doubt happy to see the stock's share price spike this morning, but they should also brace for more volatility.
With the Federal Reserve poised to raise interest rates, inflation still stubbornly high, and an unpredictable conflict in Europe, it's likely that the market, in general, could experience a lot more instability in the coming months.
That doesn't mean Upstart investors should panic. Instead, they should revisit their original investment thesis to keep a long-term perspective on owning the stock.
