It's been a bleak start to the week for ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has lost a meaty 1.33% and is well back below 7,400 points. But ASX tech shares are faring far worse on the whole today.
For starters, the S&P/ASX All Technology Index (ASX: XTX) has plunged past the losses of the broader market, currently down a nasty 3.94%. But, as you might expect, some ASX tech shares are suffering even more. Take Xero Limited (ASX: XRO), down a horrible 5.79% at $90.77 a share. Tyro Payments Ltd (ASX: TYR) has also fallen 5.82%, while WiseTech Global Ltd (ASX: WTC) is down 6.6%. And Pro Medicus Limited (ASX: PME) has lost a painful 6.5%.
So what's going on with this clear sector-wide move?
Image source: Getty Images
Why are ASX tech shares getting sold off?
Well, there's nothing specific impacting the tech sector today. However, we often see moves like this when there is broad selling pressure in the market. ASX tech shares tend to outperform the market on good days, and underperform on bad days. Today is a prime example of the latter.
Additionally, the US tech sector has been going through some significant volatility of late which is also likely spilling over into our local markets as well. Last week, we saw several of the US the giants report their earnings. And many, such as Amazon.com Inc (NASDAQ: AMZN), disappointed. On Friday night (our time), the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX) fell a shocking 4.47%, led by Amazon's painful 14.05% drop.
It's these factors that are the most likely explanation as to why ASX tech shares are getting so hammered today. No doubt investors will be hoping things improve later in the week, but we shall have to wait and see.
