Square's (NYSE:SQ) stock rose Monday as investors put their money into tech stocks as a strategy to ride out the rising coronavirus wave that has taken hold across most of the U.S. The fintech company closed the trading day up 6.4%.
As the COVID-19 pandemic has continued to hit new peaks in states across the country, many investors have put their money into technology companies that are focused on helping businesses expand their e-commerce opportunities. Square's platform makes it easy for businesses of all sizes to set up online shops and process digital transactions.
With concerns rising and some states already walking back their economic reopenings, investors are looking to Square and other similar technology companies to keep certain parts of the economy up and running.
That positive sentiment has helped push Square's stock up 86% over the past six months, compared to the S&P 500, which ended the trading day down 2.6% over the same period.
Square's share price gains Monday didn't come from any company-specific news -- a common situation among stocks since the coronavirus began to make its presence felt in the U.S. While the gains are great for shareholders, investors should also recognize that many stocks have been extremely volatile during the pandemic. Additionally, the U.S. economy has a long road ahead before it can hope to fully recover from the economic effects of the pandemic. All of which means investors should keep a long-term perspective about the companies in their portfolios.