Key points
- The S&P/ASX All Technology Index (ASX: XTX) dropped 2.86% today
- Brainchip, Appen, Block, Altium, Megaport, Technology One and NextDC all plummeted
- US Nasdaq technology shares fell in morning trade yesterday before staging a major recovery.
ASX technology shares slumped overall today, failing to replicate the recovery of Nasdaq US tech stocks overnight.
The S&P/ASX All Technology Index (ASX: XTX) dived 2.86% to close at 2,522 points.
Let's take a look at the performance of some key ASX tech shares today.
How did ASX tech shares perform?
ASX tech shares nosedived today. The Appen Ltd (ASX: APX) share price descended 7.37% while Brainchip Holdings Ltd (ASX: BRN) shares plummeted a massive 13.60% despite no news from the company.
Meanwhile, the Block Inc CDI (ASX: SQ2) share price dropped 4.21% today and Altium Limited (ASX: ALU) shares fell 1.78%
Xero Limited (ASX: XRO) slipped 3.49%, Computershare Limited (ASX: CPU) stumbled 2.64%, and NextDC Ltd (ASX: NXT) sunk 2.15%.
Additionally, TechnologyOne Ltd (ASX: TNE) descended 2.34%, Megaport Ltd (ASX: MP1) tumbled 1.99%, and Wisetech Global Ltd (ASX: WTC) plunged 6.59%.
What happened in the US?
ASX tech shares often follow the movement of the tech-heavy Nasdaq Index, as my Foolish colleague Brooke noted yesterday.
But while the US Nasdaq may have staged a tech sell-off in morning trade yesterday, afternoon trade saw investors buying up. The dramatic turnaround came after the US Treasury auctioned two-year notes, VOA News reported.
The Nasdaq-100 Technology Sector (NASDAQ: NDXT) finished 1.65% in the green. However, between market close on 21 January in the United States and 12.30pm yesterday, the index fell 4.71%. It then staged a massive recovery of 6.76% in afternoon trade.
Amazon.com Inc (NASDAQ: AMZN) gained 1.33% after falling 4.46% between market close on 21 January and 12.30pm.
Meanwhile Microsoft Corporation (NASDAQ: MSFT) also climbed 0.11% overall after falling 5.37% in the same time frame. Apple Inc (NASDAQ: AAPL) finished just 0.49% in the red after falling 4.18% up to 12.30pm.
While ASX tech shares stabilised this afternoon, most did not stage the comeback of their US counterparts.
However, Megaport certainly showed some recovery. Despite falling 4.4% on the previous close to a low of $14.43 at 12.19pm, it regained 2.56% of this loss in afternoon trade to finish at $14.80.
