Why Block Stock Was Up Over 8% Today
Shares of digital payments and fintech giant Block (NYSE: SQ), formerly known as Square, rallied 8.2% higher today as of 1:15 p.m. ET. Tech stocks in general were rallying ahead of the U.S. Federal Reserve's hotly anticipated announcement on its benchmark interest rate. The NASDAQ Composite was up 2.2%.
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High-growth stocks that generate little-to-no profit have been bludgeoned in recent months. The Fed has indicated it will be hiking interest rates in an attempt to combat inflation, and that expectation for higher rates lowers the present value of risk assets like stocks. Additionally, many investors have soured on Block's rebrand late in 2021 that highlights the company's growing interest in developing the Bitcoin (CRYPTO: BTC) blockchain network. Block CEO Jack Dorsey believes working on the original cryptocurrency is a top priority as the world goes further down the digital path.
Source Fool.com
