The Zip Co Ltd (ASX: ZIP) share price continues to take investors on a wild ride this week.
After tumbling 8.89% on Monday, the buy now, pay later (BNPL) company's shares are rebounding strongly of late.
Yesterday, Zip shares recovered 4.27% at Tuesday's market close despite no announcements from the group.
And today, its shares zoomed skyward 11.7% to finish at 95.5 cents at the final bell – just pipping last week's closing price of 95 cents per share.
Let's take a look at what could be driving these recent gains.
Image source: Getty Images
What's driving Zip shares upwards today?
The Zip share price is on the move following an uptick across the S&P/ASX 200 Financials Index (ASX: XFJ).
At the end of Wednesday, the sector finished up 1.11% at 6,219.3 points.
It appears the financial industry is reeling from the heavy beating it took on Monday when investors fled the market.
Fears reemerged about an aggressive rate hike from the United States Federal Reserve after hawkish comments by its chair Jerome Powell.
However, it seems the financial market is recovering for now with a knock-on effect for Zip shares.
No doubt, this will bring some relief to Zip shareholders after seeing the company's shares drop in value in 2022.
In its full-year results, Zip reported record revenue of $620 million, but posted a $1 billion loss on the bottom line.
Furthermore, net bad debts continued to increase, in which Zip has made a priority to tidy up.
Zip share price summary
Over the past 12 months, the Zip share price has plummeted 86%, with year to date currently down 78%.
Based on today's price, Zip presides a market capitalisation of around $588.22 million.
