Why are ASX 200 tech shares having such a stellar run today?

The NASDAQ 100 closed yesterday at its highest level since 4 May.

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Key points

  • ASX 200 tech shares are leaping higher today
  • US tech shares surged yesterday following some strong earnings reports
  • Block shares lead the charge higher today, up 9.7%

S&P/ASX 200 Index (ASX: XJO) tech shares are enjoying a great run today.

While the ASX 200 is up a healthy 0.4% in late morning trade, the S&P/ASX All Technology Index (ASX: XTX) – which contains some smaller tech shares outside of the ASX 200 – is up an impressive 2.41%.

Australia's big tech stocks are broadly charging higher following a strong lead from US technology companies yesterday (overnight Aussie time).

What happened with US tech stocks?

Yesterday saw some more strong earnings results from some of the biggest US tech stocks.

Moderna Inc (NASDAQ: MRNA) closed 16% higher on the back of its earnings report.

And PayPal Holdings Inc (NASDAQ: PYPL) leapt 9.3% on the back of its results.

Along with some other strong performers, this saw the tech-heavy NASDAQ 100 close up 2.7%, reaching its highest level since 4 May.

Commenting on the strength of the US reporting season, chief market strategist at B. Riley Wealth Art Hogan said (courtesy of Bloomberg), "Now that we're 70% through the earnings reporting season, we can clearly say that it's not the earnings Armageddon that many had feared. That's important."

And that strength looks to be offering some helpful tailwinds for ASX 200 tech shares today.

ASX 200 tech shares leaping higher

It's a sea of green among the ASX 200 tech shares.

The Xero Ltd (ASX: XRO) price is up 1% at the time of writing, having earlier posted gains of 3.4%.

Shares in the online accounting and business services closed at $96.90 yesterday and are currently trading for $97.85.

WiseTech Global Ltd (ASX: WTC) is also enjoying a healthy boost today. Though like Xero, it's given back much of its early morning gains.

After leaping 4.2% higher earlier today, shares in the global logistics software solutions provider are up 1.22% at the time of writing.

As for Nextdc Ltd (ASX: NXT), the data centre operator is up 1.69%.

The biggest gains among the ASX 200 tech shares today are being realised by Block Inc (ASX: SQ2), owner of Afterpay.

The Block share price is up a whopping 9.69% at the time of writing, currently trading for $127.00 per share.

This comes after a stellar run for Block's US-listed shares, which closed up 11.4% on the NYSE yesterday.

Motley Fool contributor Bernd Struben 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 Block, Inc., PayPal Holdings, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended PayPal Holdings. 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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