Affirm Holdings Inc (NASDAQ:AFRM) shares traded higher Tuesday as growth stocks rallied amid a drop in yields.
The Federal Reserve is in the midst of what is expected to be its most aggressive tightening cycle in more than 40 years as the central bank attempts to tame runaway inflation. Investors continue to worry about rising inflation and the potential for higher rates to cause a recession.
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However, lower rates increase the present value of future cash flows, which can positively impact the valuations of growth stocks. The 10-Year Treasury yield was hovering around 2.816% at press time.
Affirm offers a platform for digital and mobile-first commerce.
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AFRM Price Action: Affirm has traded between $176.65 and $13.64 over a 52-week period.
The stock closed up 15.4% Tuesday at $19.83, according to data from Benzinga Pro.
Photo: courtesy of Affirm.
