Why did these tech shares lead the ASX 200 today?

These were some of the ASX 200’s best performers on Tuesday.

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Key points

  • ASX 200 tech shares were among the top performing stocks on the index today
  • It comes as Block officially takes over Afterpay and the Nasdaq Index dodged recording its worst January ever
  • Among the leaders were the share prices of Block, Appen, Zip, and Brainchip

The S&P/ASX 200 Index (ASX: XJO) spent the day in the green, and its best-performing sector was way out in front of its competition.

The S&P/ASX 200 Info Tech Index (ASX: XIJ) led the market, recording a 2.4% gain by Tuesday’s close.

For context, the ASX 200 ended 0.49% higher while the All Ordinaries Index (ASX: XAO) gained 0.61%.

Let’s take a look at which shares rallied to boost the tech sector on Tuesday.

Why did ASX 200 tech shares outperform today?

The ASX 200 was led by technology stocks today as some market favourites surged higher.

The Appen Ltd (ASX: APX) share price was at the front of the pack with a gain of 7.9%.

The Block Inc CDI (ASX: SQ2) share price was also among the best performing ASX 200 stocks today, having surged 6%. That followed its Nasdaq listing’s 10.79% increase in Monday’s session. It was also potentially bolstered by its official unification with Afterpay today.

Meanwhile, the Zip Co Ltd (ASX: Z1P) share price lifted 4.7% on the same day its former rival Afterpay was removed from the index entirely.

Other ASX 200 winners included Codan Limited (ASX: CDA), Life360 Inc (ASX: 360), and Altium Limited (ASX: ALU). They gained 4.1%, 4.2%, and 3.5% respectively.

Meanwhile, among the leaders of the All Ords were Brainchip Holdings Ltd (ASX: BRN), up 16.1%, and ELMO Software Ltd (ASX: ELO), which rose 7.5%. The latter’s stock was boosted by an update on its half-year performance.

The tech sector was likely bolstered by the recent performance of the Nasdaq Composite Index (NASDAQ: .IXIC).

Against plenty of odds, it avoided recording its worst January ever by gaining 6.6% over the last 2 sessions of the month. It rose 3.1% on Friday and gained 3.4% yesterday.

That left it 8.9% lower than it was at the end of December.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., Elmo Software, Life360, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd and Elmo Software. 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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