What happened to ASX tech shares today?

It was a tough day for the technology sector. Here are the details…

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A disappointed female investor sits in front of her laptop and puts her hand to her forehead and closes her eyes in disappointment over share price falls

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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.

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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. 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 Altium, Appen Ltd, Block, Inc., MEGAPORT FPO, Microsoft, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia has recommended Amazon, Apple, 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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