The Zip Co Ltd (ASX: ZIP) share price is plunging alongside the broader market on Wednesday.
The S&P/ASX 200 Index (ASX: XJO) tech favourite is following its peers into the red after a disastrous session on Wall Street overnight.
Right now, the Zip share price is 87.2 cents, 6.74% lower than its previous close.
Meanwhile, the ASX 200 has dumped 2.61% and the S&P/ASX 200 Information Technology Index (ASX: XIJ) – from which Zip often takes its cues – is down 3.74%.
Let's take a closer look at what's going wrong for the ASX 200 buy now, pay later (BNPL) stock today.
What's weighing on the Zip share price today?
The Zip share price is suffering amid a major sell-off event on Wednesday after inflation data sent Wall Street spiralling overnight.
Data released on Tuesday found the United States' consumer price index (CPI) lifted 0.1% in August despite expectations it would fall. It has risen 8.3% over the last 12 months.
That drove Wall Street to record its worst session in more than two years, with the Dow Jones Industrial Average Index (DJX: .DJI) falling 3.94% and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) plummeting 5.16%.
As readers can see, news of still-rising inflation appears to have hit tech stocks harder than most.
That's likely because tech shares are generally more yield sensitive and growth focused while higher inflation often increases the cost of borrowing — as interest rate hikes are employed to tame the measure – and reduce the value of future cash flow.
Both outcomes are bad news for growing tech companies. Particularly, those that are still unprofitable, such as Zip.
Joining the Zip share price in the red today is the owner of its former ASX-listed peer Afterpay, Block Inc (ASX: SQ2). Stock in the payment provider has tumbled 5.26% at the time of writing.
Only one ASX 200 tech share is holding a gain today. That is Computershare Ltd (ASX: CPU), currently up 0.08% after earlier jumping 1.9% in early trading. Experts have previously tipped the company as an inflation hedge, as my Fool colleague Tony Yoo reports.
