The Zip Co Ltd (ASX: ZIP) share price is falling to its lowest level since July today.
Zip shares are down 5.15% at the time of writing and are currently trading at 64.5 cents. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.41% today.
Let's take a look at why the Zip share price is having such a tough day.
Buy Now Pay Later (BNPL) shares fall
The Zip share price may be in the red today, but it is not the only Buy Now Pay Later (BNPL) share struggling.
The Block Inc (ASX: SQ2) share price is down 6% today, while Sezzle Inc (ASX: SZL) shares are descending 2.7%.
BNPL shares including Zip appear to be falling amid general sector weakness and a tough day in the USA on Friday.
The S&P 500 Index (SP: .INX) dropped 2.8%, while the Dow Jones Industrial Average (DJX: .DJI) fell 2.11%. The technology heavy Nasdaq Composite Index (NASDAQ: .IXIC) slumped 3.8%.
Among the heavy fallers were multiple BNPL shares. Block's New York Stock Exchange listing Block Inc (NYSE: SQ) slumped 7.27%, while Affirm Holdings Inc (NASDAQ: AFRM) lost 9.79%.
Fears of further interest rises amid a strong US jobs market weighed on investor sentiment. Allspring Global Investments senior investment strategy Brian Jacobsen said (courtesy of US Today):
The employment situation is still good and that might be a little frustrating to the Fed.
The Fed thinks we need more people unemployed in order to make sure inflation comes down and stays down.
The Zip share price exploded more than 50% in the first quarter of the 2023 financial year, as my Foolish colleague James recently reported.
However, broker sentiment on the future outlook for the Zip share price is mixed. For example, Ord Minnett analysts have placed a $1.10 price target on the company's shares. But UBS rates Zip as a sell with a 45 cent price target.
Zip share price snapshot
The Zip share price has slumped 91% in the past year, while it is down 85% year to date.
For comparison, the ASX 200 has lost nearly 9% in the past year.
Zip has a market capitalisation of about $454.5 million based on the current share price.
