What happened PayPal Holdings (NASDAQ: PYPL) was bouncing around on Tuesday, up 5.4% in morning trading, but then dropping as the day went on. Now what While the good news on inflation, and potentially interest rates on Wednesday, may jolt the market this week, there is a lot of economic uncertainty heading into 2023. Interest rates will likely continue to rise as inflation is still high, and economists raise the likelihood of a recession or economic slowdown and a market correction.