What happened
The stock market was having a strong day on Tuesday, rebounding from a slump triggered by the situation in Ukraine and general fears of an economic slowdown. However, Block (SQ +2.43%) -- formerly known as Square -- was a big outperformer. As of 1:30 p.m. ET, Block was higher by nearly 6% for the day.
NYSE: SQ
Key Data Points
So what
To be sure, some of today's gains can be attributed to general market strength. The S&P 500 is only up by about 1% as of mid-afternoon, but several other fintechs are among the market's top performers. Companies like PayPal (PYPL +1.47%), Upstart (UPST +2.04%), and SoFi (SOFI +0.63%) are all outperforming the market today as well.
Separately, we also learned that Cathie Wood's Ark Invest bought nearly 52,000 more shares of Block in the midst of Monday's slump. Wood's exchange-traded funds (ETFs) have been hammered in the recent growth-stock sell-off, but this is still a big vote of confidence from a very prominent investor.
Image source: Block (Square).
Now what
In whichever direction shares are heading, volatility has been the name of the game recently, especially for growth stocks like Block. It would be wise to expect this to continue for the foreseeable future, at least until investors get some clarity regarding inflation, interest rate hikes, and the war in Ukraine.
Bu even after today's rally, Block is still about 65% below its 2021 high, so if you're a believer in the company's fast-growing fintech ecosystem, now could be a smart time to take a closer look.
