Block Inc (NYSE:SQ) shares are trading significantly lower Wednesday alongside several companies in the broader technology sector amid continued volatility as investors digest the latest U.S. inflation data, which came in higher-than-expected.
The consumer price index increased 8.3% in April from the prior year, which was lower than the 8.5% increase in March, but the number came in above the Dow Jones estimate of 8.1%. Although the CPI number was lower than it was in March, 8.3% is still near the highest levels in 40 years.
The core CPI number, which excludes energy and food costs, rose 6.2% in April, which was above estimates for a 6% increase.
Related Link: 'Inflation's Momentum Is Still Strong': Experts React To 8.3% CPI Inflation, Higher Than Expected
The Federal Reserve plans to continue to hike rates until inflation falls significantly. The Fed generally aims to maintain inflation around 2% per year.
Bitcoin (CRYPTO: BTC) has continued on its downward trajectory, which could be weighing on the stock. Block generates revenue from customers using its Cash App to buy and sell cryptocurrency.
Block is a global technology company with a focus on financial services.
SQ Price Action: Block is making new 52-week lows on Wednesday.
The stock was down 13.9% at $72.61 at time of publication.
Photo: courtesy of Block.
