The Xero Limited (ASX: XRO) share price has rebounded 6% from a 52-week low that it experienced earlier today.
In morning trade, Xero shares dropped below $82. At the time of writing, Xero shares are up around 3% for the day at $86.93.
However, the ASX tech share has suffered from such heavy selling this year that it’s still down 14% over the past month and around 40% since the beginning of the 2022 calendar year.
Other ASX growth shares are also experiencing rebounds today. The Altium Limited (ASX: ALU) share price, which was earlier sinking by 5%, is now only down by less than 1% at $29.78, while the WiseTech Global Ltd (ASX: WTC) share price has recovered from an early fall of 7% and is now up 2.75% at $40.41.
Additionally, the S&P/ASX 200 Information Technology Index (ASX: XIJ), down by around 5% at one stage, is now in the red by just 1%.
What’s happening to the Xero share price?
There has been plenty of market attention on rampant inflation and how central banks will need to increase interest rates to combat this.
Interestingly, last night the NASDAQ-100 (NASDAQ: NDX) fell by 4%.
It was earlier this week that Dennis Gartman, the chair of the University of Akron Endowment, told Bloomberg Radio that the share market would be in a bear market until there was a one-day “violent, downward movement” which signals that prices had reached a bottom.
Mr Gartman said:
We’ll have one day when we’ll be down 5% or 6% and that’ll be the final selling pressure. That’ll end the bear market.
Time will tell whether the tech sector has just witnessed the bottom, or whether there is more volatility to come.