Why are ASX 200 tech shares having such a stellar start to the week?

ASX 200 tech shares are outperforming the benchmark today.

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Key points

  • ASX200 tech shares are having a positive start to the week 
  • The All Technology Index is in the green after an early surge this morning
  • Technology shares are following a similar pattern to the NASDAQ in the US on Friday 

ASX 200 tech shares are starting the week on a high, following a similar path to those on US markets.

The S&P/ASX All Technology Index (ASX: XTX) is up 2.08% at the time of writing at 2,096.4 points after rising 4% higher earlier in the session. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.2% so far today.

Let's take a look at why ASX 200 tech shares could be climbing today.

Technology shares rise

ASX 200 tech share Block Inc (ASX: SQ2) is soaring 4.15% at the time of writing, while the Xero Ltd (ASX: XRO) share price is 3.81% higher. Wisetech Global Ltd (ASX: WTC) shot up 4.8% early in the day and has now settled at 0.41% higher.

Meanwhile, Altium Limited (ASX: ALU) is ahead 1.93% and TechnologyOne Ltd (ASX: TNE) is 1% higher.

ASX technology shares often follow in the footsteps of their US counterparts. On Friday, US tech shares were surging. The Nasdaq-100 Technology Sector Index (NASDAQ: NDXT) soared 5.67% on Friday. Apple Inc (NASDAQ: AAPL) leapt 3.19%, while Microsoft Corporation (NASDAQ: MSFT) jumped 2.26%, Meta Platforms Inc (NASDAQ: FB) jumped 3.86% and Telsa Inc (NASDAQ: TSLA) rocketed 5.71%.

Commenting on this market recovery on Friday, CFRA chief investment strategist Sam Stovall told CNBC:

Just as trees don't climb to the sky, prices don't fall forever. Even in corrections and approaching bear markets, they tend to experience relief rallies, which is what the markets appear to be starting today.

Meanwhile, on the New York Stock Exchange, Block Inc (NYSE: SQ) soared 11.07%

Share price snapshot

The All Technology Index has fallen 16% over the past year, while it is down 30% year to date.

In the past month, the index has shed nearly 14%, while it has dropped almost 3% in the past week.

For perspective, the ASX 200 has climbed nearly 2% in the past year while it has fallen 4% year to date.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Apple, Block, Inc., Meta Platforms, Inc., Microsoft, Tesla, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Apple and Meta Platforms, Inc. 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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