The Zip Co Ltd (ASX: ZIP) share price is back on the horse on Wednesday. Its recovery comes as the S&P/ASX 200 Information Technology Index (ASX: XIJ) leads the market, gaining 3.57%.
At the time of writing, the Zip share price is 60.5 cents, 18.63% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.25%.
Letâs take a look at what might be going on with the ASX 200 buy now, pay later (BNPL) share and its tech peers today.
What’s driving the Zip share price higher today?
ASX 200 tech stocks are launching higher on Wednesday and the Zip share price is leading the way.
That’s despite the Reserve Bank of Australia hiking interest rates 50 basis points to 1.35% yesterday. The move is likely bad news for consumer sentiment and could have been expected to weigh on the BNPL giant’s stock today.
While Zip isnât technically a tech share â itâs at home on the S&P/ASX 200 Financials Index (ASX: XFJ) â the companyâs stock tends to trade in line with its technology-focused peers.
The tech sectorâs rally might be a reaction to a strong session on the tech-heavy NASDAQ index on US markets overnight.
The Nasdaq Composite lifted 1.75% in Tuesdayâs session overseas following a public holiday on Monday.
Its surge also comes as bond yields fall. US 10-year yields fell by around 2.8% overnight.
LPL Financialâs Quincy Krosby has reportedly linked falling bond yields with potential gains among tech stocks. Krosby was quoted by News.com.au as saying:
The concern of a recession is deepening … You look for growth, where you can find it. Many of those large tech names that have been beaten up by the market become attractive again, particularly when the bond yields are lower.
Todayâs gain leaves the Zip share price 86% lower than it was at the start of 2022. The ASX 200 tech sector has also slumped 34% year-to-date.
The post Zip share price reignites with a 19% rally amid tech bounce appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of June 1 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Up and back down: Why is the Zip share price volatile today?
- The Zip share price lost 94% of its value in FY22
- What on earth happened to ASX 200 tech shares in June?
- Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher
- Why is the Zip share price jumping 11% today?
Motley Fool contributor Brooke Cooper 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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/K5fNeQl
Leave a Reply