Affirm (AFRM) shares soared over 11% yesterday after the Fed’s March dot plot reiterated three rate cuts for 2024. Rate-sensitive names like Affirm have been under pressure this year amid concerns that the Fed might take a more hawkish stance, as inflation is still sticky and above the 2% level that the central bank targets.
There was a broad-based rally in U.S. stocks yesterday as Fed Chair Jerome Powell sounded a lot more dovish than what markets were expecting. Meanwhile, despite yesterday’s rally, AFRM stock is still down 23.1% for the year. That slump was preceded by a stellar rally in 2023, when Affirm stock rose 408% during the year - way ahead of the 24% returns that the S&P 500 Index ($SPX) delivered last year.
