The Block Inc (ASX: SQ2) share price is taking a tumble in morning trade, down 3.8%.
Block shares closed on Friday trading for $101 and are currently trading for $97.13.
The ASX buy now, pay later (BNPL) share is slipping despite a moderately positive start from the broader market, which sees the S&P/ASX 200 Index (ASX: XJO) up 0.1%.
So, what's pressuring the Block share price?
What are ASX BNPL share investors considering?
The Block share price is again finding itself under pressure on Monday amid speculations of an outsized interest rate hike from the US Federal Reserve this Wednesday.
The August inflation figures in the United States came in 0.1% higher than the numbers in July. While that may not sound like much, analysts had broadly forecast that inflation in the world's top economy would show signs of slowing.
But it isn't.
That has upped the odds that the Fed will continue with a series of aggressive interest rate hikes. A growing number of analysts forecast the world's most influential central bank may even raise the benchmark interest rate by a full 1% later this week.
These concerns saw the dual-listed Block shares slide 6.2% on the NYSE on Friday (overnight Aussie time) and are driving the fall in the Block share price on the ASX today.
The higher inflation and interest rate environment hasn't been kind to BNPL stocks in 2022. Among other tailwinds, analysts fear that higher rates will see more of their customers struggle to make their interest free instalment repayments, increasing the companies' already rather alarming levels of bad debts.
Block share price snapshot
Block shares began trading on the ASX on 20 January, after the company completed its acquisition of Afterpay.
Since listing, the Block share price has fallen a painful 45%. That compares to an 8% drop in the ASX 200 over that same period.
