Here’s why the Block share price is charging higher today

Happy man paying using a BNPL service.

Happy man paying using a BNPL service.

The Block Inc (ASX: SQ2) share price is charging higher in morning trade.

Shares in the global payment services provider closed yesterday at $99.50 and are currently trading for $103.75, up 4.3%.

So, why are ASX investors snapping up Block shares?

Why is the Block share price leaping higher today?

The BNPL company is having a good day on the ASX after a stellar day for its US listed stock yesterday (overnight Aussie time), which closed up 9.6% on the NYSE.

The run up in the Block share price was spurred by a broader rally across the tech sector, seeing the NASDAQ finish the day up 4.1%.

A similar trend is emerging here on the ASX, with the S&P/ASX All Technology Index (ASX: XTX) leading the charge today. The All Tech index is up 2.8% at the time of writing, compared to a more moderate gain of 0.8% posted by the All Ordinaries Index (ASX: XAO).

Block shares and equities more broadly are rallying following yesterday’s 0.75% interest rate hike by the US Federal Reserve. The second consecutive month of an outsized rate rise by the world’s most influential central bank.

While that may seem counterintuitive, traders took heart from some modestly dovish words by Fed chair Jerome Powell, indicating that the pace of further rate hikes may soon moderate.

How that all plays out remains to be seen.

But you won’t hear shareholders complaining about the big leg up in the Block share price today, trimming the company’s year-to-date losses to 41%.

The post Here’s why the Block share price is charging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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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