US market bounces back, ASX 200 tech shares on watch

The tech-heavy Nasdaq rebounded 2.32% on Friday. This could put ASX 200 tech shares like Afterpay Ltd (ASX: APT) on watch this morning.

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Wall Street staged a much-needed rebound on Friday, softening what was otherwise a challenging week for most sectors. What does this mean for S&P/ASX 200 Index (ASX: XJO) tech shares?

The Nasdaq Composite (NASDAQ: .IXIC) led the pack, running 2.32% higher while the S&P 500 Index (SP: .INX) and Dow Jones Industrial Average Index (DJX: .DJI) improved a respective 1.49% and 1.06%. 

The strength of the US market, especially in the Nasdaq, could carry over to ASX 200 tech shares on Monday. Let’s take a closer look. 

Will ASX 200 tech shares follow Nasdaq? 

US tech mega-caps including Tesla IncFacebook IncApple Inc, Netflix IncMicrosoft Corporation and Alphabet Inc all finished Friday’s session between 1.90% and 3.50% higher.

This could see some life come back into the beaten up S&P/ASX 200 Info Tech Index (ASX: XIJ), which slipped 6.8% last week and is down an ugly 19.4% year to date. 

The blame could be attributed to weakness in ASX 200 tech heavyweights including Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and Wisetech Global Ltd (ASX: WTC)

Following the Nasdaq’s bounce on Friday, investors are likely to be keeping a close on these ASX 200 tech shares today.  

Could ASX 200 BNPL shares catch a break? 

The buy now, pay later (BNPL) sector has come under relentless selling pressure of late with the likes of Afterpay breaking below the $100 level earlier this month and closing at an 8-month low of $86.35 on Friday.

Shareholders will be hoping the rebound in US tech and 11.64% surge in US-listed BNPL company Affirm Holdings Inc (NASDAQ: AFRM) will bring some strength back into embattled ASX BNPL shares. 

PointsBet share price on watch 

The PointsBet Holdings Ltd (ASX: PBH) share price has struggled this month despite positive announcements from the company including a strong third-quarter update, the launch of its iGaming platform in Michigan and a small US$2.9 million acquisition

Similar to the Affirm situation above, PointsBet’s largest US competitor, Draftkings Inc (NASDAQ: DKNG) and key US partner Penn National Gaming Inc (NASDAQ: PENN) both jumped a respective 9.51% and 6.19% higher on Friday. Investors will be hoping this translates into gains for the PointsBet share price when the market opens this morning.

Foolish takeaway

After being major beneficiaries of the pandemic, ASX 200 tech shares have been struggling recently. If tech shares do manage a partial rebound on Monday, the question will be whether the move is just a one-off bounce or part of a broader recovery.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, Netflix, Pointsbet Holdings Ltd, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, WiseTech Global, and Xero and recommends the following options: long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Netflix, and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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