The Altium Ltd (ASX: ALU) share price is tumbling today despite no announcements from the electronic design software company.
This comes after its shares staged a mini-rebound this week, climbing as high as $28.88.
However, Altium shares have since retraced to fall 4.96% to $27.19 in late afternoon trade.
What's driving Altium shares lower?
A broader fall across the Aussie share market is putting selling pressure on the Altium share price.
Overnight, the heavily weighted Nasdaq 100 Technology Index (NDXT) dropped 3.46% as investors became more pessimistic about the outlook for the economy.
United States consumer confidence plummeted to a 16-month low as the Federal Reserve tries to curb soaring inflation.
This negative sentiment is impacting the S&P/ASX All Technology Index (ASX: XTX), which is down 3.68% to 1,916.6 points today at the time of writing.
In addition, the drumbeat of a possible recession is again sparking talk from a number of economists.
According to the New York Times, a perfect storm of decade-high inflation, aggressive rate hikes, and weakened economic activity is causing concern.
Morgan Stanley believes the United States has a 30% chance of slipping into a recession within the next 12 months.
Another prominent investment house, Goldman Sachs, also thinks the recession odds are at 30% by 2023.
If this does occur, Australia won't be spared by any means, as its economy is closely linked with the United States.
It's worth noting that Altium's revenue base is predominately based in the United States, followed by Europe and then China.
The company remains debt-free and reported a net cash balance of US$195 million as of 31 December.
Altium share price snapshot
After reaching an all-time high of $45.30 on 31 December 2021, the Altium share price has continued to decline in 2022.
For the year-to-date period, its shares are down 40% on the back of extreme volatility mixed with negative investor sentiment.
For context, the benchmark Aussie tech index has lost 35% over the same timeframe.
Based on today's price, Altium presides a market capitalisation of approximately $3.68 billion.
