Here’s why the Block share price is being smashed today

A man in a suit face palms at the downturn happening with shares today.

A man in a suit face palms at the downturn happening with shares today.It has been another day to forget for the Block Inc (ASX: SQ2) share price on Friday.

In morning trade, the payments company’s shares have dropped 10% to $83.52.

This means the Block share price is now down over 50% since commencing trade on the ASX in mid-January.

Why is the Block share price falling?

As many readers will be aware, the locally listed Block shares are inextricably linked to the company’s shares on Wall Street.

So, when the Block share price tumbles in the United States, its ASX listed shares follow suit the following session.

And how the Block share price has tumbled on Wall Street in recent sessions!

After closing at US$61.50 on Tuesday night, the company’s shares have dropped over 9% to US$55.93 at last night’s close.

This follows a selloff of tech stocks amid news that the US Federal Reserve has made another major increase to interest rates and plans more aggressive hikes in the coming months.

Not only have rising interest rates put pressure on tech valuations, but they have also sparked fears that a recession could be just around the corner.

This has rubbed off on locally listed tech shares. The likes of Xero Limited (ASX: XRO) and Zip Co Ltd (ASX: ZIP) have both fallen heavily this morning. This has led to the S&P ASX All Technology index sinking a disappointing 3.5% on Friday.

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

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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., Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. 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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