Shares of Square, Inc (NYSE:SQ), a digital-payment facilitator, rose today as investors digested generally positive news that President Trump may return to the White House soon. Investors may also be optimistic that lawmakers are trying to work together on a new stimulus deal.
The tech company's stock rose by as much as 6.4% during today's trading and was up by 6.2% as of 2:47 p.m. EDT.
While there wasn't any company-specific news that would cause Square's share price to jump today, investors are likely reacting to news that President Trump could be released soon from Walter Reed Army Medical Center after spending several days in the hospital following his positive COVID-19 diagnosis.
Tech stocks have been in demand ever since the coronavirus began spreading across the U.S. Investors have pushed up, and driven down, stocks in the sector on coronavirus-related news. Square's share-price jump today appears to keep with that trend.
Aside from the president's health, investors are also reacting to the news the House Speaker Nancy Pelosi met with Treasury Secretary Steven Mnuchin today as they work on a potential stimulus deal. No agreement was made, but the two will meet again tomorrow. Any sign that another stimulus deal could be reached before the upcoming presidential election will likely stoke optimism in the market.
It's also worth mentioning that Square announced yesterday that Jacqueline Reses, who leads the company's Square Capital division, is leaving the company at the end of this month. Considering that Square's share price is up, and not falling, it appears investors aren't concerned with the management change.
With today's gains, Square's stock is up an astonishing 187% year to date.
Square has benefited from a shift to digital-financial transactions, and the company has continued to grow despite the current pandemic. While shares are up today, investors should remember that the market is likely to experience some wild swings as the U.S. continues to grapple with a recession and the pandemic.