What's Going On With Affirm (AFRM) Stock?

Affirm Holdings Inc AFRM shares are trading lower by 4.3% to $20.34 Friday morning. Shares of several companies in the broader tech sector are volatile this week with concerns about future rate hikes following Wednesday's FOMC statement and lower-than-expected initial jobless claims data.

If the Fed continues raising interest rates, borrowing costs for consumers are likely to increase. This can affect consumers' ability to access credit and take out loans, including those offered by Affirm. Consumers may face higher interest payments on existing debt, making it more challenging for them to manage their finances.

Higher interest rates can also lead to reduced consumer purchasing power. When interest rates rise, it can become more expensive for consumers to borrow money for big-ticket purchases, such as electronics, furniture or travel, which are often financed through Affirm's buy-now-pay-later services.

This could potentially lead to a decrease in consumer spending on such items.

What's Going On?

The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.

The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year...Read More

According to data from Benzinga Pro, Affirm has a 52-week high of $25.63 and a 52-week low of $8.62.