If you’re buying Zip Co Ltd (ASX: ZIP) shares, you’re likely aware that the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock is well-known for its significant volatility.

And that volatility was on clear display in August.

Zip shares closed on 31 July trading for $2.55. When the closing bell rang on 31 August, shares were changing hands for $2.50 apiece.

This put the share price down 2.0% over the month just past, underperforming the 1.1% gains posted by the ASX 200.

Now, I know a 2% monthly decline doesn’t sound particularly volatile.

But here’s the thing.

On 20 August, Zip stock rocketed 18.2%.

The following day, shares crashed 15.7% as profit-taking looks to have taken the lead.

It’s enough to have you reaching for your Dramamine.

Here’s what’s been happening.

What’s been sending Zip shares on a wild ride?

August saw a few headwinds pick up for the ASX 200 BNPL stock.

Among these were rising expectations that inflation in its two dominant markets, Australia and the United States, may take longer than hoped to bring down within those countries’ central bank target ranges.

That’s led to higher prospects of interest rate hikes from both the US Fed and the RBA. And BNPL stocks like Zip shares have proven highly sensitive to interest rate moves.

Investors also have high growth expectations for the company. Which Zip delivered on when it reported its FY 2026 results on 20 August.

What did Zip report for FY 2026?

If you’ve been paying attention, you’ll have noted that 20 August was the day that Zip shares surged 18.2%, closing the day at $3.05 apiece.

Investors were overheating their buy buttons after the company achieved some record-breaking results.

Over the 12 months, Zip increased its active customers by 3.7% from FY 2025, up to 6.5 million. And the company saw a 27.2% lift in its total transaction volume (TTV) to $16.7 billion, driving a 24.7% increase in full-year revenue to $1.34 billion.

Zip also achieved record cash earnings before taxes, depreciation and amortisation (EBTDA) of $268.9 million, up 57.9% year on year.

And with the BNPL stock’s operating margin increasing by 4.2% to 20% in FY 2026, Zip posted a net profit after tax (NPAT) of $116.4 million, up 45.7% from the prior year.

The company also expects to deliver more earnings growth in the current financial year, targeting cash EBTDA of $340 million in FY 2027, representing a 26% increase from FY 2026.

Commenting on the results that sent Zip shares flying on the day, CEO Cynthia Scott said:

Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale.

In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

The post Why Zip shares took investors on a wild ride in August appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. 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.

The S&P/ASX 200 Index (ASX: XJO) is back in positive territory on Thursday after a tough start to September.

At the time of writing, the benchmark index is up 0.46% to 9,019 points, recovering part of Wednesday’s 0.97% fall.

The move is also fairly broad, with 116 ASX 200 shares trading higher, compared with 73 fallers and 11 unchanged.

If the gains hold through the afternoon, it would also end a 3-day losing run for the stock market.

So, what is helping the ASX 200 rebound today?

US markets back in the green

Investors had a much better lead to work with this morning after Wall Street snapped a 3-day losing streak overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) rose 0.56%, while the S&P 500 Index (SP: .INX) gained 0.46%, and the Nasdaq Composite Index (NASDAQ: .IXIC) added 0.45%.

Bond yields also settled down a little after jumping earlier in the session. The US 10-year Treasury yield briefly moved above 4.8% before easing back.

Oil prices remain another thing investors are watching, with Brent crude around US$95.63 as tensions between the US and Iran continue to support prices.

Big gains in key sectors are helping

Most of the support is coming from two of the biggest sectors in the market.

ANZ Group Holdings Ltd (ASX: ANZ) shares are up 1.76% to $38.17, while Westpac Banking Corp (ASX: WBC) is 1.59% higher at $34.94.

National Australia Bank Ltd (ASX: NAB) shares have gained 1.58% to $39.19, and Commonwealth Bank of Australia (ASX: CBA) is up 0.76% to $160.53.

And there’s plenty of strength among the miners.

Rio Tinto Ltd (ASX: RIO) shares are up 1.63% to $177.73, while Fortescue Ltd (ASX: FMG) has climbed 2.59% to $17.04.

Gold miners are also performing well, with Northern Star Resources Ltd (ASX: NST) up 2.46% to $23.14 and Evolution Mining Ltd (ASX: EVN) gaining 2.09% to $14.94.

The ASX 200 could be even higher

The ASX 200 is higher despite several large stocks trading lower as they go ex-dividend today.

BHP Group Ltd (ASX: BHP) shares are down 0.85% to $64.10, Woodside Energy Group Ltd (ASX: WDS) has fallen 2.78% to $32.16, while Coles Group Ltd (ASX: COL) is 1.82% lower at $23.46.

According to IG, those dividends are taking around 31 points off the ASX 200 today.

This means the ASX 200 would be up even more today without those ex-dividend falls.

Nonetheless, investors are still watching oil prices and the growing chance of another RBA rate hike.

Market pricing is now putting the chance of a September increase at around 72%.

The post What’s behind the ASX 200 rebound today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) mining shares are outperforming today, up 0.8%, while the broader index is up 0.5%.

Here are some new ratings and 12-month share price targets on 3 ASX 200 mining shares.

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is $6.89, up 3.5% today and down 15% over 12 months. 

Morgans has a buy rating on this ASX 200 gold share following its June quarter report. 

The broker said: 

CYL reported record production at Plutonic in Q4 to close out FY26, but we expect a softer FY27 outlook when guidance is released in late Sep-26.

Permitting timelines, the ramp-up of multiple new mines and a better understanding of processing capability are likely to drive a rebase of the Sep-25 10-year plan, potentially delaying the pathway to ~200kozpa.

As a result, we have amended our production forecasts and cost assumptions.

Following an analyst change, we retain our BUY recommendation with a revised price target of A$11.33 per share.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $22.49, up 0.5% today and up 84% over 12 months. 

Morgans downgraded the ASX 200 copper share from accumulate to hold after its FY26 results.

The broker said: 

SFR resumed dividends with a 35cps final dividend (+86% vs expectations) and we see scope for this to build further as its cash balance continues to grow with no drawn debt, supported by a favourable base metals price environment.

SFR’s asset quality, management quality and balance sheet strength, alongside emerging growth optionality, underpin its case as a core copper exposure for long-term investors, though the stock appears fully valued at current prices.

Move to HOLD (previously ACCUMULATE) with a $23ps target price.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $5.31, up 2.3% today and up 132% over 12 months.

Morgans has a sell call on this ASX 200 lithium share.

Analyst Annabelle Sleeman explained:

Depleted lithium inventories leave scope for short-term upside, though we see the medium-term outlook as more volatile given uncertainty around supply and demand drivers.

PLS delivered an in-line FY26 Underlying EBITDA result and surprised with a maiden 5cps fully franked final dividend (22% FCF payout).

We view PLS as fairly valued at current levels, with its premium to peers already reflecting the company’s best-in-class execution, balance sheet and growth optionality.

The post Buy, hold, sell: PLS Group, Catalyst Metals, Sandfire Resources shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.