Here’s why the Block share price just rocketed 8%

The Block Inc (ASX: SQ2) share price is charging higher today, up 8.6% at the time of writing.

Block shares closed yesterday trading for $83.93 and are currently trading for $91.14 apiece.

So, what’s driving investor interest in the buy now, pay later (BNPL) share?

What’s piquing ASX 200 investor interest today?

There’s no price-sensitive news out today to directly impact the Block share price.

The surge comes amid a wider rally in stocks, fuelled by another very strong day in US markets overnight.

Block, which acquired Afterpay in January, is dual listed, both on the ASX and NYSE. And the Block share price finished the day up 8.6% on the NYSE yesterday, with shares up another 2.0% in after-hours trading.

With US stocks leaping higher, the S&P/ASX 200 Index (ASX: XJO) is also up 1.3% at the time of writing.

And BNPL shares are having a particularly strong day. The Zip Co Ltd (ASX: ZIP) share price is up 4.5%, and shares in Sezzle Inc (ASX: SZL) are soaring 12.6%.

The overall strength in the BNPL sector today is likely spurred on by the earnings results from Bank of America Corp (NYSE: BAC). The 13% year-on-year increase in credit card spending the bank reported yesterday beat market expectations. And that increase was topped off by a decrease in customer delinquencies.

With a large footprint in the US, the Block share price will be enjoying some healthy headwinds from the demonstrated resilience of US consumers, despite soaring inflation and fast-rising interest rates.

The big credit card figures bode well for BNPL payment use in the world’s top economy. And with the sector plagued by significant customer defaults, Bank of America’s falling delinquency numbers will also come as good news to investors.

Block share price snapshot

The Block share price has seen its fair share of big ups and downs since listing on the ASX on 20 January.

With steeper falls than climbs, Block shares are down 49% since listing.

The post Here’s why the Block share price just rocketed 8% appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Down 49% this year, here’s why I’m still holding my Block shares
• After a horror year, what’s next for ASX BNPL shares in the new quarter?
• Why Baby Bunting, Block, Fortescue, and Santos shares are dropping
• What’s the outlook for ASX 200 tech shares in the second quarter?

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. and ZIPCOLTD FPO. 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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