On 10th November 2022, United States Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data. The data reportedly turned out to be better than expected and brough bit of positivity across the stock market. Slowing down of inflation also acted as a good omen for various companies and their stock price.
The Dow Jones index is up by 3.70% from yesterday and 4.5% in the last five days while NASDAQ has witnessed a surge of 7.35% in a day and 5.37% in five.
Easing of inflation rates holds the potential to let the stock prices relax, given the possibilities of the Federal Reserves slowing down in hiking of interest rates. These hikes were one of the factors to influence the market for the whole year per se.
Several stocks earlier reported struggling to keep up the pace but easily witnessed an uptrend following the CPI report release. Stock prices of Upstart Holdings (UPST) and Ally Financial (ALLY) like companies traded up to 15% and more. Meanwhile SoFi Technologies (SOFI) stock price reached up to 8%.
Recent Drop in SOFI Stock Given Twitter News
SOFI stock dropped over 2% yesterday along with another strong player within the fintech sector PayPal droppin up to 3%. The drop in payment platform companies came in the wake of an announcement from centibillionaire Elon Musk, who is eager to make Twitter profitable and filed for making it a payment handling platform.
Twitter has its dominance due to its reach to people, the skepticism was apparent that it is likely to disrupt the financial markets too. In addition, Tesla CEO Elon Musk has his own influence which works like a charm to influence investors and people. Time will only tell if it acts upon the expectations or not since Twitter stock has never been a prominent choice of investors.
Why CPI Release Matters for SOFI Stock Price?
SoFi Technologies is a known online platform involved in digital lending and provides loans. If the slowing of inflation and Fed would reduce the hiking of interest rates, then the company could easily sell out its loans. Ultimately this would be acting as a bolster for the SOFI stock’s performance.
Following the 7.23% surge, SOFI stock is trading at 5.34 USD at the press time.
Earlier this month, the fintech company released its earnings report. The earnings did better than the estimates and analysts expected the stock price to reflect the same but did not hold for long.
Source: https://www.thecoinrepublic.com/2022/11/11/sofi-stock-surges-following-the-cpi-release/