The Zip Co Ltd (ASX: ZIP) share price took off early on Monday before settling to trade just above its previous close.
Its volatile movement follows a strong session on Wall Street and precedes an interest rate decision from the Reserve Bank of Australia (RBA).
At the time of writing, the Zip share price is 48.2 cents, 0.42% higher than its previous close.
However, earlier today the ASX buy now, pay later (BNPL) share reached a high of 51.5 cents – representing a 7.3% gain.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently 1.12% higher.
Let's take a closer look at what might be driving the Zip share price on Monday.
What's going on with the Zip share price today?
Zip's stock is following in the footsteps of the S&P/ASX 200 Information Technology Index (ASX: XIJ) today.
The sector peaked shortly after open this morning before settling in to trade 1.23% higher at the time of writing.
Its performance followed a decent session on the tech-heavy Nasdaq Composite on Friday, during which the index rose 0.9%.
However, Zip's stock might not have such a buoyant day tomorrow. Australia is preparing to hear the outcome of the RBA's monthly meeting tomorrow afternoon.
The big four banks predict the regulator will hike rates by between 0.25% and 0.5%, while T. Rowe Price's Scott Solomon wouldn't be surprised if they were upped by 0.65%.
As my Foolish colleague James reported earlier today, rising rates have been among the many factors helping to drag the Zip share price lower over the last 12 months.
The BNPL stock has plunged nearly 89% since the start of 2022. It's also trading for 93% less than it was this time last year.
