The Zip Co Ltd (ASX: Z1P) share price is giving shareholders a reason to smile at long last on Thursday.
In afternoon trade, the buy now pay later (BNPL) provider’s shares are the best performers on the ASX 200 index.
At the time of writing, the Zip share price is up over 12% to $1.62.
Why is the Zip share price charging higher?
Investors have been bidding the Zip share price higher today amid a strong rally in the tech sector.
It isn’t just Zip that is on form, the S&P/ASX All Technology index is up a massive 4.2% at the time of writing. This is more than double the gain being made by the ASX 200 index.
What’s going on?
The catalyst for this has been a very strong night of trade on Wall Street’s tech focused Nasdaq index. It rose a sizeable 3.8% after investors responded positively to the US Federal Reserve’s decision to raise interest rates for the first time in three years.
And while concerns over rate rises have weighed down shares in recent months, the rhetoric out of the central bank appears to have boosted sentiment.
Bloomberg reports that Fed Chair Jerome Powell said the US economy is “very strong” and can handle monetary tightening.
This has gone down well with investors on both sides of the Pacific and given the Zip share price a much-needed boost today.