The ongoing crypto bust stoked current fears over contagion in the crypto space, while Fed officials kept a potential recession on the table.
All the major indexes were down on Thursday morning, with the S&P 500 down about 1% as of 11:30 a.m. EDT. For Affirm, a buy now, pay later company, it was more fallout from yesterday's subpar earnings report from one of its key partners, Target.
Shares of fintech stocks Upstart (NASDAQ: UPST), SoFi Technologies (NASDAQ: SOFI), and Affirm Holdings (NASDAQ: AFRM) were plummeting today, down 8.5%, 5.1%, and 11.9%, respectively, as of 12:53 p.m. ET. There wasn't much company-specific news today, but as always, these fintech names are extremely sensitive to the market's outlook for interest rates and the potential for a recession next year. On those fronts, today's better-than-expected retail sales data could actually be interpreted as a negative, as that data point seemed to contradict recent softer inflation reports.