ASX 200 tech shares are struggling today, following in the footsteps of their US counterparts.
Technology shares in the red on Monday include Xero Ltd (ASX: XRO), Wisetech Global Ltd (ASX: WTC), and Block Inc (ASX: SQ2).
Let's take a look at why ASX tech shares are down.
Technology shares fall
The Block share price is down 3.82% at the time of writing, while Xero shares are 1.5% lower. Meanwhile, the Wisetech Global share price is 1.04% in the red.
ASX 200 tech shares are suffering after the technology-heavy NASDAQ dropped 1.87% in the US on Friday. Meta Platforms Inc (NASDAQ: META) shares also tumbled 7.59% on Friday while the Apple Inc (NASDAQ: AAPL) share price fell 0.81%.
The S&P/ASX All Technology Index (ASX: XTX) is 1.8% in the red today, while the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 1.14%.
The NASDAQ fell after social media giant Snap Inc's (NYSE: SNAP) quarterly earnings spooked investors, Reuters reported. Snapchat shares fell 39% on Friday on the back of these results.
In a letter to shareholders, Snapchat said:
We are not satisfied with the results we are delivering, regardless of the current headwinds
Meanwhile, Verdence Capital Advisors chief investment officer Megan Horneman highlighted that economic growth was "slowing significantly". In comments cited by Reuters, she said:
Economic data is coming in weaker.. kind of confirming the fact that a recession is highly likely over the next 12 months.
Block's US listing also dropped 3.96% on the New York Stock Exchange on Friday.
