Why did Upstart Holdings rise on 5 October?
Written after the close on
Upstart Holdings +6.75%
Upstart jumped on improving credit and loan growth. Upstart Holdings, Inc. (UPST on Nasdaq) rose very sharply in the latest session and climbed clearly over the last five trading days, outpacing a clearly higher S&P 500 while moving against a slightly weaker financials sector. The latest session's surge most likely followed its September update: loan originations ran at a faster daily pace than in August, and its Upstart Macro Index — a gauge of how much the economy is pushing up expected defaults on its loans, where 1.0 is normal — slipped to 1.49 from 1.50, a small but encouraging sign on credit. That company-specific news landed before the open and set Upstart apart from other consumer lenders, which barely moved. Earlier in the window, a broad bond selloff that lifted long-term government borrowing costs weighed on technology and software shares, which likely capped some of the week's gains.
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