Here's why ASX 200 tech shares (ASX:XTX) outperformed today

ASX tech shares have taken a turn for the better today.

| More on:
a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the 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

ASX 200 tech shares are in the green today, following in the footsteps of their counterparts in the United States.

The S&P/ASX All Technology Index (ASX: XTX) gained 1.66% today to 2,840.70 points at market close. This was 1% more than the benchmark S&P/ASX 200 Index (ASX: XJO), which jumped 0.66%.

Let's take a look at why ASX technology shares performed well today.

What is happening to ASX tech shares?

The All Technology Index recovered after a tough start to the year. The index fell 6.39% between market close on 31 December and market close on 11 January before clawing back some of the losses today.

One clue to the trend may be the performance of US markets. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) gained 1.73% today to 9,146.78 points.

Apple Inc (NASDAQ: AAPL) gained 1.68%, while Amazon (NASDAQ: AMZN) jumped 2.4%. US tech shares rebounded after a sell-off in the new year due to rising interest rate fears, CNBC reported.

The Australian technology sector often follows the Nasdaq index. Afterpay Ltd (ASX: APT) was one of the top ASX 200 tech shares on Wednesday, gaining 4.75%.

The company's shares surged after the Bank of Spain approved Block's takeover of the company.

Other ASX 200 and All Technology Index shares in the green today included Appen Ltd (ASX: APX), up 5.52%, and Megaport (ASX: MP1), which hiked 3.43%.

Altium Limited (ASX:ALU) also climbed 1.69%, Novonix (ASX:NVX) jumped 0.95%, and TechnologyOne (ASX: TNE) gained 1.05%. None of these companies released any news to the market today.

Foolish takeaway

The All Technology Index climbed 3.60% the past year, underperforming the broader ASX 200 index by roughly 8 percentage points.

In the past month, the All Technology index is down 6.45% and 6.78% lower in the last week.

Since market close on 31 December, it has fallen 4.83%.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, and Appen Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended Amazon and Apple. 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

rising asx share price represented by drone flying in the air
Technology Shares

How has the DroneShield share price gained 90% in a month?

DroneShield shares are once again at a new record high today.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Earnings Results

Nvidia stock pops 10% after-hours following 'insane result'

This tech behemoth's quarterly update has smashed expectations with its update.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Technology Shares

WiseTech increases dividend for 15th time in a row. Here's what you need to know

WiseTech's latest dividend continues a remarkable trajectory.

Read more »

Three analysts look at tech options on a wall screen
Earnings Results

WiseTech share price leaps 8% today as revenues surge

ASX 200 investors are bidding up the WiseTech share price today.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which beaten-up ASX 300 tech stock is rocketing 15% today

This once much-loved tech company has lost 98% of its value over the past three years.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Earnings Results

Up 119% in a year, Megaport share price slipping today despite record earnings

Megaport reported strong financial metrics across the board, but its guidance may have disappointed.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Earnings Results

Nuix share price sinks 15% after swinging to half-year loss

This tech stock is having a poor start to the week after releasing its results.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Earnings Results

Why this ASX All Ords share leaping 20% despite a big dent in profits

Falling reported profits aren't putting investors off this stock.

Read more »