If the S&P/ASX 200 Index (ASX: XJO) had a bad day yesterday, it was nothing to what most ASX tech shares experienced. As we covered yesterday, the S&P/ASX 200 Information Technology Index (ASX: XIJ) was down close to 5% at one point, exceeding the ASX 200's losses by quite a margin.
Some prominent ASX tech shares did even worse. Zip Co Ltd (ASX: Z1P) lost almost 9% at one point, while Block Inc's (ASX: SQ2) losses hit double digits.
Some tech companies unfortunately scheduled yesterday as the day to drop disappointing earnings reports. Appen Ltd (ASX: APX) and Life360 Inc (ASX: 360) were two such companies. The Appen share price and Life360 share price were both down by close to 30% at various points of the day.
The volatility continues today for ASX tech shares. But in a way that gives relief to some investors. As ASX 200 shares rebound today, ASX tech shares are leading the charge.
ASX tech shares lead recovery
At the time of writing, the ASX 200 is up a robust 0.45%. But the ASX 200 Information Technology Index is the powerhouse, up a whopping 8.1%.
Leading the charge is Block Inc, the new owner of Afterpay. Block reported its own earnings this morning and investors were mightily impressed, to say the least. The company is currently up an eye-watering 33.4%. Clearly, investors were relieved by Block's 62% rise in gross profits and its 86% surge in revenues.
Life360 has also been a strong performer today. Perhaps some investors thought things went too far yesterday, with Life360 shares now up 18.4%. Ditto with Appen, although investors are not quite as enthusiastic. Appen shares have gained 11% so far today, as have Tesserent Ltd (ASX: TNT) shares and Tyro Payments Ltd (ASX: TYR) shares.
But it's not just those shares. Almost every ASX tech share on the market is in the green today.
There's no real explanation we can give for these moves, other than to note that the tech sector is consistently one of the ASX's most volatile. It often loses more than the broader market on a down day and gains more on an up day. We saw that yesterday, and we seem to be seeing it today. Those earnings results are likely playing a role in share price movements, too.
So after a week that has probably given investors severe whiplash, it will be interesting to see what next week brings for ASX tech shares.
