Block Inc. ( XYZ ) shares are retreating during Thursday's session. The decline follows a broader market sell-off affecting the technology sector.

Macroeconomic Pressures Weigh On Growth

The Nasdaq fell 1.30% while the S&P 500 shed 1.14% on Thursday. Technology stocks are also lower today. Investors are reacting to Wednesday's Consumer Price Index report. Inflation held steady at 2.4% in February. This matched the economist's estimates.

However, the data was collected before the war in Iran. That conflict has since pushed fuel prices sharply higher.

The stock is reacting negatively as concerns over inflation and higher rates stemming from the Middle East conflict darken the outlook for consumer lending.

Dorsey's AI Strategy In Focus

CEO Jack Dorsey recently praised Nvidia Corp.'s ( NVDA ) $26 billion investment in open AI models. "This would be excellent," Dorsey wrote on X. Dorsey previously cut Block's workforce by nearly 40%. This restructuring reduced headcount from 10,000 to under 6,000.

Technical Analysis

Block is trading 5.5% above its 20-day simple moving average (SMA), but 5.4% below its 100-day SMA, which highlights a short-term rebound that hasn't fully flipped the intermediate trend back to bullish.

Shares are up 9.05% over the past 12 months, and the stock is sitting closer to the middle of its 52-week range than to either extreme.

Key Resistance: $67.00

Key Support: $49.50

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the Apr. 30 earnings report.

EPS Estimate: 52 cents (Down from 56 cents YoY)

Revenue Estimate: $6.24 Billion (Up from $5.77 Billion YoY)

Valuation: P/E of 30.8x (Indicates premium valuation relative to peers)

The stock carries a Buy rating with an average price forecast of $81.08.

Recent analyst moves include:

Macquarie: Neutral (Maintains Target to $65.00) (Mar. 3)

HSBC: Upgraded to Buy (Raises Target to $77.00) (Mar. 3)

TD Cowen: Buy (Raises Target to $95.00) (Feb. 27)

XYZ Stock Price Activity: Block shares were down 6.33% at $60.54 at the time of publication on Thursday, according to Benzinga Pro data.