Why ASX 200 tech shares are leading the charge higher today

Many tech shares have done well since the onset of the pandemic saw an increase in demand for their technology.

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S&P/ASX 200 Index (ASX: XJO) shares are, broadly, pulling the index higher today.

At time of writing the index is up 0.3%.

But it’s tech shares that are leading the way today.

Tech companies leading ASX 200 shares into the green

While ASX 200 shares are up 0.3%, the S&P/ASX 200 Info Tech (ASX:XIJ) is up 1.2% at this same time.

Leading the charge is buy now, pay later (BNPL) giant, Afterpay Ltd (ASX: APT). The Afterpay share price is up 3.6% to $126.97 per share.

Mining communications equipment and metal detector manufacturer Codan Ltd (ASX: CDA) is also performing strongly, up 2.7% to $13.35 per share.

Coming in at number 3 today is Megaport Ltd (ASX: MP1). Shares in the ASX 200 software-defined network service provider are up 2.4% to $17.96 per share.

Why are tech shares outperforming today?

ASX 200 shares in the technology sector look to be getting some tailwinds from strong performance in the United States tech markets.

The tech heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) closed up 0.9% yesterday (overnight Aussie time).

Social media front runner, Facebook, Inc. (NASDAQ: FB) closed up 1.3%. The Facebook share price is up another 1.8% in after hours trading.

Investors appeared pleased with Facebook’s third quarter (Q3) results, which saw the company commit to buying back some US$50 billion of shares. Q3 revenue also increased 35% to US$29 billion.

But the even bigger news, and bigger share price moves came from electric vehicle manufacturer, Tesla Inc (NASDAQ: TSLA). Tesla’s share price closed up a whopping 12.7%, valuing the company at more than US$1 trillion. That makes it the 5th largest listed company in the US.

The huge lift in the Tesla share price came after news that Hertz Global Holdings Inc (OTCMKTS: HTZZ) reported that it had ordered 100,000 Tesla cars.

How have ASX 200 shares been performing?

ASX 200 shares, as a whole, are having a strong year on the continuing recovery from the COVID pandemic  and rock bottom interest rates.

Year to date the index is up 11.6%, having reached an all-time high of 7,628.9 points on 13 August. Since hitting that high, the ASX 200 is down 2.3%.

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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. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Facebook, MEGAPORT FPO, and Tesla. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Facebook and MEGAPORT FPO. 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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