What happened

After soaring roughly 18% in Thursday's trading, shares of Shopify (SHOP 0.23%) surged again Friday amid continued bullish momentum for the broader market. The e-commerce services company ended today's daily session up roughly 8%. Meanwhile, levels for the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average indexes closed out the day up roughly 0.9%, 1.9%, and 0.1%, respectively.

The recent surge in bullish momentum for Shopify stock was kicked off by inflation data published Thursday that could signal an easing of bearish market pressures. The U.S. Labor Department's consumer price index (CPI) tracking for October showed inflation rising 0.4% sequentially and 7.7% year over year, which came in below expectations for a 0.6% sequential and a 7.9% year-over-year increase.

Money in a miniature shopping cart.

Image source: Getty Images.

So what

Better-than-expected CPI data for October is prompting hopes that the worst of inflationary pressures are now in the rear-view mirror. If inflation moderates going forward, the Federal Reserve may choose to ease off of additional interest rate hikes, which would certainly be a welcome development for investors.

The Fed has been raising interest rates in order to combat inflation. High interest rates, or a rising-interest rate environment, often have the effect of depressing valuations for stocks -- and growth stocks in particular. With interest rates currently sitting at their highest levels since 2008, Shopify and other growth-dependent tech companies have suffered dramatic multiple compression this year, and bullish investors have been eagerly awaiting any sign that might point to a turning of the tides. October's CPI data is driving a historic surge in bullish sentiment for growth stocks, and Shopify shares are soaring on the trend. 

Now what

Even with some explosive gains over the last couple of daily trading sessions, Shopify stock has still lost roughly 71% of its value year to date. For risk-tolerant investors willing to take a buy-and-hold approach, I believe Shopify remains a worthwhile buy at current price. The company maintains a leadership position in its corner of the e-commerce services industry and has plenty of room for expansion over the long term, but investors should keep the potential for near-term market volatility in mind.