The Zip (ASX:Z1P) share price is lifting by 7% today

The buy now, pay later company's shares are seeing a much-needed rally today.

Zip Co Ltd (ASX: Z1P) shares are among the top-performing S&P/ASX 200 Index (ASX: XJO) tech stocks today. At the time of writing, the Zip share price is pushing 7.13% higher to $7.36.

What's driving the Zip share price today?

Today's meaningful move comes without any price-sensitive announcements from the company.

The last time we heard from Zip was its global expansion announcement on 24 March. This move would see the company acquire the remaining shares in its two minority investments in Europe and the Middle East.

Today's strong move up could be in response to broader market movements across the tech index, Zip's buy now, pay later (BNPL) peers and a slump in bond yields.

Life coming back to tech shares

The S&P/ASX 200 Info Tech Index (ASX: XIJ) took a beating between April and May, with a peak to trough fall of about 20%. This was driven by the weakness in large-cap players such as Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC).

The tech index has rallied by around 2% today, and is up by around 8% in June.

Elsewhere, the Nasdaq Composite (NASDAQ: .IXIC) pushed 0.78% higher overnight, putting it within 2% of all-time record highs.

Zip rivals join in on the rally

Investors are also buying Afterpay shares on Friday, with the leading BNPL operator pushing 5.02% higher at the time of writing to $104.86. Afterpay shares have rallied by more than 10% in June to reach a 1-month high.

Another key BNPL stock making some moves is the US-listed, Affirm Inc (NASDAQ: AFRM). Affirm shares have experienced a similar bearish narrative of late, sliding from February highs of US$146.90 to May lows of US$46.50. The company's shares have staged a comeback in recent weeks, currently fetching US$63.68.

US bond yields slide overnight

Since last Friday, benchmark US Government bond yields have copped a 10% fall from about 1.625% to 1.459%.

The slump in yields coincided with the S&P 500 Index (SP: .INX) closing at record all-time highs last night, as well as the tech-heavy Nasdaq edging 0.78% higher, just ~1.35% away from April record highs.

Zip share price snapshot

Following today's moves, the Zip share price is now trading around 39% higher so far in 2021. The BNPL operator is also currently sitting around 13% higher than this time last year.

Based on the current Zip share price, the company has a market capitalisation of around $4.1 billion.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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