What happened
Shares of Square (SQ 1.35%), a digital payments and financial services company, jumped today on no company-specific news. The tech stock likely made gains today as investors started to shift their attention back to technology stocks after fleeing the sector for much of 2021.
Square's stock was up 4.1% as of 11:05 a.m. EDT.
So what
Investor sentiment has shifted away from technology stocks for much of this year as the U.S. economy has started to open back up. Investors focused their attention on high-growth tech stocks in 2020 as they looked to companies that they believed would be able to successfully ride out the pandemic.
Image source: Getty Images.
But now it looks like some investors are questioning their abrupt departure from the tech sector and are starting to snatch up tech stocks again. For example, Square's stock fell 6% just yesterday and is now making gains today -- all on no company-related news.
It's clear that investors are still trying to figure out their investment strategies as they process daily vaccine news, jobs reports, and inflation data.
Now what
Based on Square's share-price swings over the past few days and the fact the tech stock is down 5% year to date, investors can likely expect some more volatility from the company's shares. But the important thing to remember is that Square just put up some impressive numbers in its most recent quarter, and the long-term outlook for this company is likely still very good.
