Technology shares are dragging the ASX 200 down on Tuesday

Here’s why ASX 200 tech shares are sliding today.

| More on:
A man at his desk in an office holds his hands up in the air in frustration while looking at the falling share price on his computer screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is slipping today, weighed down by the S&P/ASX 200 Information Technology Index (ASX: XIJ).

At the time of writing, the ASX 200 is down 0.9%, having fallen 66 points.

Meanwhile, the ASX 200 tech sector is down a whopping 2.4% or 58 points.

The S&P/All Technology Index (ASX: XTX) is also down 2% at the time of writing.

The dip is being led by the Megaport Ltd (ASX: MP1) share price and its 6% fall.

Additionally, the share prices of Xero Limited (ASX: XRO), Nextdc Ltd (ASX: NXT), and WiseTech Global Ltd (ASX: WTC) are down 4%, 3%, and 2% respectively.

In fact, Link Administration Holdings Ltd (ASX: LNK) is the only member of the information technology sector in the green today. The company’s share price is up 0.5% despite no price-sensitive news having been released to the ASX.

The dips come despite no price-sensitive news having been released by any of the above companies.

So, what’s weighing so heavily on the index on Tuesday? Let’s take a look.

What’s dragging ASX 200 tech shares down?

Today’s fall from ASX tech shares follows a similar slide seen in US markets overnight.

While most of Australia slept, the S&P 500 (IndexSP: .INX) – the 500 largest companies listed on US markets – fell 0.28%.

Like today’s ASX 200, it was dragged down by tech shares. The US tech sector fell 1% on Monday (Tuesday AEST).

At the same time, the tech-heavy Nasdaq Composite fell 0.52%.

Some of their weights included stock in tech giants Alphabet Inc Class A (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Microsoft Corporation (NASDAQ: MSFT), which fell 0.8%, 1%, and 1.7% respectively.

Also worth noting, the US’s healthcare sector fell 1.4% overnight. That trend is also being mirrored on the ASX today.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is down 2.8% at the time of writing.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, Link Administration Holdings Ltd, MEGAPORT FPO, Microsoft, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, Link Administration Holdings Ltd, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Three people gather around a large computer screen where they are looking at something that is captivating their interest with a graphic image of data and digital technology material superimposed to the right hand third of the image.
Technology Shares

Is the Megaport share price a buy following the company’s latest results?

Could Megaport go higher?

Read more »

Three colleagues stare at a computer screen with serious looks on their faces.
Dividend Investing

‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert

Investors seeking income stocks need to do more than simply look at what the companies paid out over the past…

Read more »

Two men laughing while bouncing on bouncy balls
Share Gainers

Why is the BrainChip share price bouncing 6% higher today?

What's causing the BrainChip share price to pop on Tuesday?

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

Megaport share price rises as revenue lifts 40%

Investors appeared to react positively to Megaport's results.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Technology Shares

Here are 2 excellent ASX tech shares a top broker says are buys

Here are two highly rated ASX tech shares...

Read more »

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
Share Gainers

Guess which ASX tech share just soared 40% on takeover news

This small-cap ASX tech share has shot up 40% today.

Read more »

A man leaps through the air with a swimming cap and a look of uncertainty.
Share Gainers

Why is the Appen share price jumping 10% on Monday?

What's going on with Appen shares?

Read more »

A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today
Technology Shares

Why is the Novonix share price having such a lousy start to the week?

The Novonix share price is handing back some of its recent gains.

Read more »