The Afterpay Ltd (ASX: APT) share price has reversed most of yesterday's losses following a strong rebound on Wall Street overnight.
At the time of writing, Afterpay shares are up 4.08% to $118.24, tracking well ahead of its ASX-listed rivals Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL), both of which are up about 2%.
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What's driving the Afterpay share price?
Wall Street paved the way for today's gains, with all major indices bouncing about 1%.
The S&P 500 Index (SP: .INX) added 45 points, or 1.05%. The Dow Jones Industrial Average Index (DJX: .DJI) was up 312 points, or 0.92%.
And perhaps more relevant to the Afterpay share price, the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) recouped 178 points or 1.25%.
Technology shares shrugged off concerns about rising yields, even as benchmark US Treasury yields continued to climb.
Overnight, 10-year US Treasury yields hit session highs of 1.54% and are currently fetching 1.55%, the highest since mid-June.
Rising yields have driven concerns that higher inflation is here to stay, despite the US Federal Reserve's previous assessment that it was only "transitory".
Richly-valued technology shares are the most sensitive to higher yields, which affect how investors value the company's all-important future profits.
Nonetheless, bargain hunters were quick to step up in last night's session, driving broad-based gains across all sectors except real estate and utilities.
Communication services, financials and tech were among the best performing sectors in the US.
Afterpay's US-listed rival Affirm Holdings Inc (NASDAQ: AFRM) closed 3.27% higher after plunging 8.42% on Tuesday. While Afterpay's soon-to-be parent company Square Inc (NASDAQ: SQ) rallied 4.3% to US$235.98.
Based on Square's closing price, its takeover exchange ratio of 0.375 shares and current exchange rates, this implies a theoretical value of $121.52 a share for Afterpay.
The Afterpay share price has closely tracked the performance of Square since its takeover offer 2 months ago.
