Why is the Block share price leaping 5% on Wednesday?

A person runs and leaps over rows and rows of blocks, as they topple in his wake.A person runs and leaps over rows and rows of blocks, as they topple in his wake.

It’s been a fairly average day so far for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 has lost 0.42% and is back to around 6,968 points. But no one seems to have told the Block Inc (ASX: SQ2) share price.

Block (formerly known as Square) shares are having a cracking day today. The fintech company is presently enjoying a 5.05% gain, which puts it at $115.82 a share. This latest rise means that Block has now put on a pleasing 11.09% over the past five trading days, and an even more gratifying 25% or so over the past month.

So what might be behind Block’s stellar ASX performance so far today?

Why is the Block share price surging on Wednesday?

Well, unfortunately, the answer is unclear. Today’s moves have nothing to do with any news or announcements out of Block, seeing as there are none. In fact, Block hasn’t released any price-sensitive news in over two months.

So our most likely explanation for Block’s performance today is the broader performance of ASX tech shares. ASX tech shares are currently the best performing sector on the ASX 200 today, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) currently up a healthy 1.8%.

As one might expect, this means that there are several ASX tech shares recording strong gains today. Take Megaport Ltd (ASX: MP1) shares, up more than 6% today. It’s a similar story with EML Payments Ltd (ASX: EML), which is up more than 7%. Zip Co Ltd (ASX: ZIP) shares are up nearly 12%, as we looked into earlier.

So it seems Block shares are getting caught up in this burst of goodwill towards the ASX tech sector this Wednesday. No doubt shareholders won’t be complaining.

At the current Block share price, this ASX 200 tech share has a market capitalisation of US$41.8 billion.

The post Why is the Block share price leaping 5% on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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., EML Payments, MEGAPORT FPO, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. 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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