Shares of fintech darling Upstart Holdings (UPST -0.30%) were up 6.4% today as of 1:20 p.m. ET. At one point, they were up nearly 7% on the day as some high-growth stocks rallied after another brutal leg down for the market last week.
As of this writing, Upstart is down 48% so far in 2022, and over 80% below its all-time high. By comparison, the Nasdaq Composite is down 18% so far in 2022.
There was no specific news from Upstart to set off today's rally. Rather, the market seemed to be rewarding high-growth but richly valued stocks like Upstart with some relief after a sell-off last week. The market renewed its interest-rate worry after Federal Reserve chair Jerome Powell indicated a steeper-than-expected 0.5% interest rate hike was on the table during the Fed's next meeting in May.
In response, interest rates on 10-Year Treasury notes briefly spiked to nearly 3% last week, before settling just below 2.8% today. This is the highest rate for 10-Year Treasuries since autumn 2018. As a reminder, higher interest rates lower the present value of risk assets like stocks.
Upstart will provide details on its first-quarter 2022 financials on May 9. The company said to expect revenue of $295 million to $305 million, which would represent a 65% year-over-year increase at the midpoint of guidance. It also expects to generate net income of at least $18 million, compared to $10 million in the year-ago quarter.