The Zip Co Ltd (ASX: ZIP) share price has continued its incredible run and charged higher again on Thursday.
In morning trade, the buy now pay later (BNPL) provider's shares are up a further 16% to $1.43.
This means the Zip share price has now more than tripled in value since hitting a record low of 44 cents at the end of last month.
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Why is the Zip share price rocketing higher?
Investors have been buying Zip and other ASX tech shares today following an exceptionally strong night of trade on the NASDAQ index.
The tech focused index stormed 4.1% higher during overnight trade after the market responded positively to the US Federal Reserve's hint that rate increases may soon moderate.
In addition, the Zip share price has been on fire this month after investors decided that it and its fellow BNPL shares had been oversold.
The buying was so strong for the shares of rival Sezzle Inc (ASX: SZL) that the company was dealt a speeding ticket by the ASX operator yesterday.
Sezzle explained what it thinks is happening:
The Company is not aware of any explanation for the increased securities price and volume. However, we note on the date in question that the entire sector strongly outperformed the market in terms of price and relative historical trading volume. We believe it is likely that investors led the increase in trading activity, because of the sector having been significantly down in recent weeks.
