Why are ASX tech shares struggling today?

What’s going on with technology shares today?

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Key points

  • Multiple ASX tech shares are in the red today 
  • The S&P/ASX All Technology Index is sliding on the market 
  • ASX tech shares are following in the footsteps of their US counterparts 

Multiple ASX tech shares are having a horror day on the market today.

The S&P/ASX All Technology Index (ASX: XTX) is down 1.2% while the S&P/ASX 200 Info Tech Index (ASX: XIJ) is falling 0.8%.

Let’s take a look at what could be impacting ASX tech shares.

Why are tech shares in the red?

The Megaport Ltd (ASX: MP1) share price is diving 6% today while the Appen Ltd (ASX: APX) share price has plummeted nearly 7%.

Block Inc (ASX: SQ2) shares have fallen 3.96% while WiseTech Global Ltd (ASX: WTC) shares are 1.46% down.

Life360 Inc (ASX: 360) shares have descended 6.8%, TechnologyOne (ASX: TNE) shares are down 2.04%, and Xero Limited (ASX: XRO) shares are falling 1.55%.

ASX tech shares appear to be declining following a tough night on the NASDAQ in the United States.

NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) fell 1.16% in the US overnight.

Amazon.com, Inc. (NASDAQ: AMZN) shares descended nearly 3% while Microsoft Corporation (NASDAQ: MSFT) slid 1.05%. Block’s US listing (NYSE: SQ) also tumbled 2.21% overnight.

Commenting on this movement, CFRA Research chief investment strategist Sam Stovell was quoted by Reuters as saying:

The reason for lack of direction this week and next week is investors are looking for what’s going to happen in the second quarter reporting period.

Motley Fool contributor Monica O'Shea 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 Appen Ltd, Block, Inc., MEGAPORT FPO, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended MEGAPORT FPO. 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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