The Block Inc (ASX: SQ2) share price has been among the best performers on the ASX 200 index on Thursday.
In afternoon trade, the payments company’s shares are up a sizeable 6% to $89.66.
Why is the Block share price storming higher?
Investors have been fighting to get hold of the company’s shares today after Block’s US-listed shares stormed higher on Wednesday night.
As one ASX-listed Block share is equal to one NYSE-listed Block share, the locally listed shares tend to follow the lead of their American counterparts each day.
The good news for local investors is that Block’s shares rose 7% to US$59.07 overnight after a major rebound in the tech sector, which led to the tech-focused NASDAQ index rising 2.1%.
Based on current exchange rates, this equates to a price of A$91.17, which is a touch higher than where the locally listed Block share price trades today.
What drove the strong gain?
Improving investor sentiment appears to have been the driver of this strong gain. Particularly for beaten down tech and fintech stocks.
It wasn’t just Block that was rising on Wall Street on Wednesday. Rivals Affirm and PayPal also recorded 5%+ gains.
It appears as though investors may feel that US stocks have bottomed after hitting a 2022 low earlier this week. Though, we’ve seen a number of false bottoms in recent months. So, time will tell if things are different this time.
The post The Block share price is smashing the market with a 6% gain today appeared first on The Motley Fool Australia.
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