Block Shares Hit 52-Week Lows: What's Going On?

Block Inc 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 BTC/USD 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.