The Zip Co Ltd (ASX: ZIP) share price is storming ahead on the market today.
Zip shares are currently up 7.29%, trading at 51.5 cents a share. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.92% in the green today.
Let's take a look at what could be lifting the Zip share price.
What's going on?
Zip is not the only ASX buy now, pay later (BNPL) charging higher today. The Block Inc (ASX: SQ2) share price is 4.11% higher, while Sezzle Inc (ASX: SZL) shares are gaining 4.72%.
ASX BNPL shares appear to be following in the footsteps of their United States counterparts. Overnight, Affirm Holdings Inc (NASDAQ: AFRM) shares surged 13.02% on the NASDAQ, while Block's New York Stock Exchange listing Block Inc (NYSE: SQ) jumped 3.97%. Paypal Holdings Inc (NASDAQ: PYPL) shares also rose 4.79%.
ASX financial shares are having a good day on Wednesday, with the S&P/ASX 200 Financials Index (ASX: XFJ) up 1.15%.
This follows a surge in bank stocks overnight ahead of the US Federal Reserve's decision on interest rates, due on Wednesday US time (early Thursday morning Australian time). The US S&P 500 Index lifted 1.3%.
Standard Chartered head of G10 FX research Steve Englander, cited by Reuters, said:
The banking sector's near-death experience over the last two weeks is likely to make Fed officials more measured in their stance on the pace of hikes.
Meanwhile, Zip co-founder Peter Gray recently revealed the company has a "very strong platform" to accelerate, during an interview with my Foolish colleague James. He said, "We remain confident that we have sufficient liquidity and funding to see us through to group positive cash EBTDA during H1 FY24."
Broker Shaw and Partners has recently reiterated a buy rating on Zip shares with a $2.02 price target.
Zip share price snapshot
The Zip share price has fallen 66.3% in the last year. However, it has lifted 7.29% in the last week.
Zip has a market capitalisation of about $394 million based on the current share price.
