Why is the Block share price surging 8% higher today?

Block’s shares are on fire on Monday…

| More on:
A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Block shares are surging higher on Monday morning
  • This follows a strong night for its NYSE listed shares on Friday night
  • Investor sentiment has been boosted by slowing inflation in the United States

It has been a great start to the week for the Block Inc (ASX: SQ2) share price.

In morning trade, the payments giant’s shares are up a sizeable 8% to $126.25

Why is the Block share price surging higher?

The rise in the Block share price on Monday mirrors the gains made by the company’s NYSE listed shares on Friday night.

Block’s shares stormed 8.5% higher on Wall Street amid a big rebound in the tech sector. This rebound helped drive the tech-focused Nasdaq index a hefty 3.3% higher during the session.

This has rubbed off on the Australian tech sector this morning, with the S&P ASX All Technology index up an equally strong 3.1% at the time of writing.

But what’s driving tech shares higher?

Investors were flooding back into the tech sector on Friday night following the release of inflation data out of the United States.

That data revealed that US inflation slowed in April after reaching a forty-year high in March.

This has sparked hopes that inflation won’t be as bad as feared and that the US economy won’t fall into a recession.

It could also mean the US Federal Reserve doesn’t have to be as aggressive with its rate hikes, which would bode well for tech sector valuations.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Two people shaking hands in the boardroom on a merger.
Technology Shares

Guess which ASX All Ords share just inked a new deal with Fortescue

Sadly, the deal hasn't been enough to save the ASX All Ordinaries share from the red.

Read more »

A woman shrugs and pulls awkward expression with her face.
Materials Shares

Is Novonix considered an ASX lithium share?

Can Novonix be considered an ASX lithium stock?

Read more »

One young boy jumps off a step ladder and is captured mid-air about to land on a seesaw where his friend is standing with a wide smile on his face looking at the camera and holding his thumbs up as though he is excited for the ride to come. Both young boys are wearing business suits.
Mergers & Acquisitions

Nearmap share price jumps 30% on takeover news

The Nearmap share price rallied 33% to $2.01 in early trade on Monday, but remains below the bid price.

Read more »

A group of five people dressed in black business suits scrabble in a flurry of banknotes that are whirling around them, some in the air, others on the ground as some of them bend to pick up the money.
Technology Shares

2 ASX tech shares about to go cash-flow positive

After massive interest rate rises, using your own cash to operate is so much better than borrowing to survive.

Read more »

Galan Lithium share price falling asx share price represented by a sad and flat battery
Technology Shares

Novonix share price tumbles 6% on Friday. What’s going on?

It's proving to be a rough day for this ASX 200 tech share.

Read more »

A mother and her young son are lying on the floor of their lounge sharing a tech device.
Technology Shares

Is the Megaport share price back on track after a broker upgrade?

A tech stock rally in the US and a broker upgrade helped Megaport shares to a 3% gain on Thursday.

Read more »

a graph indicating escalating results
Technology Shares

Why are ASX 200 tech shares flying higher on Thursday?

Inflation, interest rates, tech shares. What a recipe for Thursday's session.

Read more »

A happy woman sits on an outdoor deck with trees behind her and holds a credit card in one hand and her mobile phone in the other hand
Technology Shares

Why has the Block share price exploded 9% on the ASX today?

Why are Block shares booming in value this Thursday?

Read more »