Why is the Block share price leaping 9% on Friday?

Block shares are storming ahead on a good day for the ASX tech sector.

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The S&P/ASX 200 Index (ASX: XJO) is having a pleasing end to the week so far this Friday. The ASX’s flagship index has recorded a gain of 1% at the time of writing at just over 7,100 points. But one ASX share in particular is smashing the ASX 200 today. That would be the US fintech company Block Inc (ASX: SQ2) share price.

Block, which owes its ASX listing to its new ownership of Afterpay, is on fire today, no way around it. Block shares are presently up a pleasing 9.2% at $126.83 a share after the company closed at $116.10 yesterday and opened at $123.79 this morning.

Block share price rockets more than 9%

So why are Block shares shooting so dramatically higher today? Well, there hasn’t been any news or announcements out of the company itself we can point to.

However, there is a palpable mood on the markets today. And it’s one that is benefiting shares like Block. ASX tech shares are almost all enjoying some strong gains this Friday. We can see this in other tech shares including Zip Co Ltd (ASX: ZIP), Altium Limited (ASX: ALU), and Xero Limited (ASX: XRO).

Further, last night saw Block Inc (NYSE: SQ) – the company’s primary US listing – rocket 6.19% to US$87.14 a share. This came after Block held an investor presentation over in the US on Wednesday.

As our Fool colleagues over in the US covered at the time, one analyst called this presentation “a compelling vision of how various components of its ecosystem will become increasingly connected and synergistic over time”. Another described Block as “on a path to “eventually [becoming] a bank”.

So it’s perhaps no wonder that Block’s ASX listing is also steaming ahead today.

The Block share price is now up 10% since last Friday’s close, but still remains deep in the red over the past month (down almost 25%) and over 2022 so far (down more than 28%).

At the current Block share price, this ASX 200 fintech share has a market capitalisation of US$50.59 billion.

Motley Fool contributor Sebastian Bowen has positions in Block, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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