SoFi, Upstart, and Affirm surge 6-8% amid a decline in long-end Treasury yields, boosting high-multiple growth stocks.
Fintech stocks rebounded midday Wednesday, led by SoFi Technologies (SOFI), Upstart Holdings (UPST), and Affirm Holdings (AFRM), which rose 6%, 8%, and 7% to $18.66, $31.58, and $78.55, respectively. The gains followed a sharp retreat in long-end Treasury yields, with no company-specific catalysts reported.
The 10-year Treasury yield fell 5 basis points to 4.65%, while the 30-year yield declined 8 basis points to 5.2%. The Treasury Department announced plans to double buybacks of long-dated debt, easing pressure on yields. Lower yields typically benefit consumer lenders and high-growth stocks, driving the sector-wide rebound.
Despite the rally, SoFi and Upstart remain down 33% year-to-date, while the FINX fintech ETF is down 12%. Upstart’s 0.6% weighting in funds limits the impact of its single-day surge on broader portfolios.