Avis Budget Group (CAR) shares surged 5.20% during intraday trading on Friday, continuing a period of extreme momentum for the rental car company's stock.

The sharp move is attributed to a short squeeze, where heavy short interest collided with a rush to cover positions, creating volatile price swings. This activity has capped a remarkable run, with the stock posting a 30-day return of over 340%.

Broader market sentiment also provided a tailwind, as Avis has been highlighted as one of the big winners during the tech-heavy Nasdaq's recent hot streak. Investor optimism has been buoyed by the prospect of an extended U.S.-Iran cease-fire, which could reduce energy prices and ease monetary policy conditions—factors viewed as positive for corporate earnings.