Why are ASX 200 tech shares having such a cracking Friday?

It’s a good day to be invested in ASX 200 tech stocks.

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Key points

  • A strong performance on the Nasdaq index has likely bolstered ASX 200 tech stocks on Friday
  • The tech sector is the ASX 200's best performer today, gaining 2.5% 
  • Among the sector's leaders are WiseTech and Block Inc with market favourites Novonix and Xero also recording notable increases

S&P/ASX 200 Index (ASX: XJO) tech shares are leading the market on Friday following a strong session on Wall Street overnight.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) rose 2.69% as most Australians slept. At the same time, the S&P 500 Index (SP: .INX) gained 1.84% and the Dow Jones Industrial Average lifted 1.33%.

At the time of writing, the ASX 200 Information Technology Index (ASX: XIJ) is 2.56% higher. It’s being driven by some of the market’s most well-known names. For comparison, the ASX 200 is currently up 0.79%.

Let’s take a look at what’s helping to boost ASX 200 tech shares today.

ASX 200 tech shares lead the market on Friday

ASX 200 tech shares are taking off on Friday after their international counterparts recorded strong gains.

Among Thursday’s Nasdaq-listed winners were tech giants Tesla Inc (NASDAQ: TSLA) and Meta Platforms Inc (NASDAQ: FB). They gained 4.68% and 5.42% respectively.

Meanwhile, Amazon.com Inc (NASDAQ: AMZN) leapt 3.15% higher.

ASX 200 tech giants such as WiseTech Global Ltd (ASX: WTC) and Block Inc (ASX: SQ2) have followed suit and are outperforming on Friday.

Right now, shares in WiseTech are trading 5% higher at $42.96, while Block shares are also among the sector’s best performers, gaining 4.67% to reach $119.93.

 Meanwhile, market favourites Novonix Ltd (ASX: NVX) and Xero Limited (ASX: XRO) are lifting 4.5% and 2.8% respectively.

Today’s gains are likely to be particularly welcome for ASX 200 tech fans as the sector has been severely underperforming in 2022.  

It has tumbled more than 32% since the start of this year. For context, the ASX 200 is down nearly 5% year to date.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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. Motley Fool contributor Brooke Cooper 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 Amazon, Block, Inc., Meta Platforms, Inc., Tesla, 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 Amazon 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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