What’s happening with ASX 200 tech shares today?

Rising interest rates and fears of a recession the United States are seeing growth assets come under pressure.

| More on:
Kid with a brown paper bag on his head which has a sad face on it sits in front of an old style computer representing falling ASX 200 tech shares today.

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 in the green but ASX 200 tech shares are selling off 
  • The tech heavy Nasdaq lost 2.4% yesterday 
  • Investors are concerned over a possible recession in the United States 

S&P/ASX 200 Index (ASX: XJO) tech shares are off to a poor start in early trade today.

While the ASX 200 is up 0.5% the S&P/ASX All Technology Index (ASX: XTX), which also contains some companies outside of the top 200 by market cap, is going the other way.

At the time of writing the All Tech index is down 2.1%.

Some of the heavier losses among ASX 200 tech shares are being posted by global payments giant, Block Inc (ASX: SQ2). The Block share price is down 5.9% to $108.80. This comes after its US listed shares tumbled 9% yesterday (overnight Aussie time).

Also in the red is accounting software provider Xero Limited (ASX: XRO), down 1.1%.

And WiseTech Global Ltd (ASX: WTC), which provides cloud-based software solutions for the logistics sector, is down 2.9% to $39.98 per share.

So why are tech companies coming under pressure?

What’s happening with the technology sector?

ASX 200 tech shares look to be following the lead of the Nasdaq.

The tech-heavy US index fell 2.4% yesterday, taking its year-to-date losses to 29.8%.

Growth shares the world over have come under pressure in 2022 amid rising interest rates and fears of a recession in the United States, the world’s biggest economy.

Yesterday’s hit to US tech shares was driven by a global social media provider, Snap Inc (NYSE: SNAP). Snap reported that macroeconomic conditions were deteriorating and lowered its profit forecast with its digital advertising revenue likely to come under pressure.

The Snap share price crashed 43% by market close.

Ouch.

The carnage at Snap hit most every big US tech share, with Alphabet (NASDAQ: GOOGL) – or Google if you prefer – dropping 5%.

And now ASX 200 tech shares are feeling the headwinds.

How have ASX 200 tech shares done in 2022?

With the RBA and central banks in many other nations lifting their benchmark interest rates for the first time in a decade this year, with more rate hikes flagged, growth stocks like ASX 200 tech shares have largely lost ground.

Year to date the All Tech index is down 32.8%, compared to a loss of 5.3% posted by the ASX 200.

Suzanne Frey, an executive at Alphabet, 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 Alphabet (A shares), Alphabet (C shares), Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Technology Shares

Here’s what Goldman Sachs thinks of the Xero share price

What's being said about Xero's shares this week?

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.
Earnings Results

Nuix share price tumbles following $23m loss in FY22

Nuix shares dropped into the red on Thursday...

Read more »

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today
Earnings Results

Codan share price sinks 10% despite record profit

How did Codan track for the 2022 financial year?

Read more »

A gold bear and bull face off on a share market chart
Technology Shares

Does the bull beat the bear for this ASX tech share?

Let's take a look at the bull and bear cases for this ASX tech share.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Technology Shares

Guess which ASX tech share is soaring 16% on a new Google deal

This tech share has had a great past 12 months.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero share price dips 5% on weaker UK performance

The ASX market darling is feeling the heat after providing an update at its AGM.

Read more »

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Earnings Results

Data#3 share price dips despite 19% leap in FY22 dividend

The ASX tech share said ongoing supply chain issues had impacted its performance over the year.

Read more »

A hipster looking man with bushy beard and multiple arm tattoos sits on the floor against a sofa reading a tablet with his hand on his chin as though he is deep in thought.
Industrials Shares

Why did the Novonix share price nosedive 6% today?

We check what happened to shares in the battery material technology company on Wednesday.

Read more »