It has been a great start to the week for the Block Inc (ASX: SQ2) share price.
In morning trade, the payments giant’s shares are up a sizeable 8% to $126.25
Why is the Block share price surging higher?
The rise in the Block share price on Monday mirrors the gains made by the company’s NYSE listed shares on Friday night.
Block’s shares stormed 8.5% higher on Wall Street amid a big rebound in the tech sector. This rebound helped drive the tech-focused Nasdaq index a hefty 3.3% higher during the session.
This has rubbed off on the Australian tech sector this morning, with the S&P ASX All Technology index up an equally strong 3.1% at the time of writing.
But what’s driving tech shares higher?
Investors were flooding back into the tech sector on Friday night following the release of inflation data out of the United States.
That data revealed that US inflation slowed in April after reaching a forty-year high in March.
This has sparked hopes that inflation won’t be as bad as feared and that the US economy won’t fall into a recession.
It could also mean the US Federal Reserve doesn’t have to be as aggressive with its rate hikes, which would bode well for tech sector valuations.
The post Why is the Block share price surging 8% higher today? appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- These were the worst performing ASX 200 shares last week
- Here are the top 10 ASX shares today
- What’s happening with ASX 200 tech shares today?
- Here’s why ASX 200 tech shares are under pressure on Tuesday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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