The WiseTech Global Ltd (ASX: WTC) share price is under more pressure as the sell-off in ASX tech shares continues today.
At the time of writing, shares in WiseTech have cratered 7.78% into the red and are trading at $42.68 apiece. Let's take a look at the price action from today.
What's up with WiseTech today?
WiseTech shares started the day poorly and had sunk by almost $1.40 per share from the previous close at the open today.
This trend continued all morning before shares finally bottomed around midday. They have been rangebound ever since, on a very thin volume of just 29% of its 4-week average trading volume.
Plus this activity has all occurred in the absence of any price-sensitive information from the company today.
However, the carnage has extended into the whole ASX tech sector, with the S&P/ASX All Technology index (XTX) also down more than 4% on the day as well.
It has plunged almost 17% this year to date, whereas the WiseTech share price has sunk around 27% in the same time, as seen on the chart below.
ASX tech shares have been rocked in 2022 amid a sector-wide correction that's been brought on by rising yields on long-dated US Treasury bonds.
Given these rates are used as proxy figures to calculate the valuations of assets such as equities, ASX shares in general have been hit hard as these bond yields have risen.
Plus the impact is disproportionate to high-beta tech shares, given their sensitivity to changes in the yield curve and in the overall market.
The current 10-year US Treasury yield is 1.76%, having gained 67 basis points in the last year and 25 basis points in the last month alone.
Hence as investors reshuffle capital and flock to the more defensible and quality corners of the market, these outflows are likely to hurt tech shares such as WiseTech and family.
WiseTech share price summary
In the last 12 months, the WiseTech share price has climbed more than 31%. However, the selling pressure has crept in and left investors in the red this year.
WiseTech hares are also down around 11% in the past week.
