Why are ASX tech shares having such a stellar day?

ASX tech shares are rocketing higher today. And it seems to be thanks to Elon Musk…

| More on:
a group of people gathered around a laptop computer with various expressions of interest, concern and surpise on their faces. All are wearing spectacles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 is powering ahead today
  • The leading sector in these gains is ASX tech shares
  • But what does Elon Musk have to do with these gains?

The S&P/ASX 200 Index (ASX: XJO) is having another great start to this day’s trading thus far. At the time of writing, the ASX 200 is up a healthy 0.41% at just under 7,550 points. Although many ASX shares are in the green today, it seems ASX tech shares are leading the charge.

For one, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recorded the highest gain of any ASX sector so far today. It’s currently up a pleasing 3.22%. But we are also seeing this flow into the share prices of many ASX tech shares. Take Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX). These ASX tech stalwarts are up 4.17% and 2.6% respectively so far today. Xero Limited (ASX: XRO) is up 4.35%. And leading the tech sector’s gains is Block Inc (ASX: SQ2), up a whopping 6.42% so far today to $191.80 a share.

So why are ASX tech shares powering ahead so enthusiastically?

ASX tech shares rising? Thank Elon Musk…

Well, we can’t be certain. But these ASX tech share moves likely have at least something to do with the blockbuster announcement last night (our time) that Tesla Inc (NASDAQ: TSLA) CEO Elon Musk made.

Musk, the world’s richest person, has long been known for his, er, market antics. Musk dropped a bombshell announcement last night, revealing he has just purchased a US$3.68 billion stake in the social media company Twitter Inc (NYSE: TWTR). As my Fool colleague Mitchell covered this morning, Musk now owns a 9.2% stake in Twitter, making him the company’s single largest shareholder. He now owns more than four times as many Twitter shares as the company’s founder, Jack Dorsey. Dorsey is also a founder of Block, as it turns out.

So this move saw the Twitter stock price jump a massive 27% by the close of the US markets. Tesla stock was up more than 5% as well, with many other US tech shares also finishing higher.

It’s likely these events and market moves are at least partially responsible for the subsequent enthusiasm we see with ASX tech shares today. Especially with the ASX-listed Block shares. Never a dull moment with Elon Musk.

Motley Fool contributor Sebastian Bowen owns Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., Tesla, Twitter, and Xero. The Motley Fool Australia owns and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

digital screen of bar chart representing asx tech shares
Technology Shares

Broker names 3 of the best ASX tech share to buy in FY23

These tech shares could be buys in FY 2023...

Read more »

Technology written in orange in tech sector financial diagram.
Technology Shares

What on earth happened to ASX 200 tech shares in June?

Why did ASX 200 tech shares have such a horrible month over June?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Technology Shares

Why did the Kogan share price sink 22% in June?

Kogan's shares were sold off again in June...

Read more »

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market
Technology Shares

Why this top broker just slapped a buy rating on Xero shares

Xero shares could be great value according to Morgans...

Read more »

Three businesspeople leap high with the CBD in the background.
Technology Shares

Why is the PointsBet share price storming 13% higher today?

PointsBet's shares are jumping again on Thursday...

Read more »

a group of three young men sit on a sofa in a home environment with a bowl of popcorn and beer bottls in front of them cheering on one of their group as he looks excitedly at his phone as though he's just had some success on an online gambling app.
Technology Shares

Why is the BetMakers share price charging 7% higher today?

BetMakers shares are having a decent start to the day...

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Technology Shares

Here’s why the Electro Optic Systems share price collapsed 26% today

The defence contractor's shares did not win the battle today.

Read more »

A man yells as his virtual reality headset and earphones tumble to the floor.
Technology Shares

Here’s why ASX 200 tech shares are taking a beating on Wednesday

Global share markets are forecast to remain volatile until inflation is brought under control.

Read more »