ASX 200 tech shares are staging a remarkable recovery today

ASX tech shares copped a beating this morning. But many are bouncing back with a vengeance.

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What a day it has been for ASX shares. The S&P/ASX 200 Index (ASX: XJO) has lost another 1.38% so far today at the time of writing and is now only a few points above the 7,000 mark. For most of the morning, it was ASX tech shares that had borne most of the brunt of this sell-off, as is typical these days. We saw shares like Block Inc (ASX: SQ2), Zip Co Ltd (ASX: ZIP), WiseTech Global Ltd (ASX: WTC), and Xero Limited (ASX: XRO) absolutely slaughtered.

Soon after open, the S&P/ASX All Technology Index (ASX: XTX) dropped as much as 4.4%, reflecting these losses.

But something strange has happened as the trading day has stretched on. ASX tech shares have staged something of a remarkable recovery. Although the All Tech Index was down 4.4% at one point, it is now only down 0.2% at the time of writing. What’s more, the All Tech Index broke even around midday and was in the green for a time.

ASX tech shares bounce back

We see this index recovery reflected in many ASX tech share prices. Xero is a perfect example. The cloud-based accounting software provider was down around 3.6% earlier this morning and hit a new 52-week low of $81.27. But now, Xero shares have bounced back and are trading at just over $87 now, up 3.23% for the day.

WiseTech shares have followed a similar pattern, recovering from close to a 7% loss to now boasting a near-3% gain.

It is unknown what is causing this extreme volatility in the ASX tech shares space. Perhaps investors have just decided that the falls of this morning went a little too far. And this is only over the course of one trading day. Who knows what the rest of the week will bring.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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