The Brainchip Holdings Ltd (ASX: BRN) share price spent a solid day in the green today amid a positive trading session overall for ASX technology shares.
Shares in the artificial intelligence tech solutions company closed today at 97 cents each, a 5.43% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) closed 1.59% higher.
Let's look at what might have impacted the Brainchip share price today.
What happened?
The Brainchip share price was not the only ASX technology share going gangbusters on Thursday. Shares in Megaport Ltd (ASX: MP1) surged 12%, while Xero Ltd (ASX: XRO) climbed 3.52%. Meanwhile, Life360 Inc (ASX: 360) shares soared 16.7% higher at the close.
Today's boost for multiple ASX technology shares came after the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) rose 2.14% in the United States overnight.
As my Foolish colleague Sebastian noted recently, ASX tech shares have a tendency to follow the trend of US stocks, typically more so than other sectors.
The Information Technology Index (ASX: XIJ) is up 3.19% overall today, while the S&P/ASX All Technology Index (ASX: XTX) closed 3.12% in the green.
What else?
The Nasdaq rose after US Federal Reserve vice chair Lael Brainard warned of risks of overtightening in the US economy.
Investors look to the Federal Reserve for guidance on monetary policy amid high inflation. On Wednesday, the Fed also published its beige book on economic activity.
Brainard said (courtesy of CNBC):
At some point in the tightening cycle, the risks will become more two-sided.
The rapidity of the tightening cycle and its global nature, as well as the uncertainty around the pace at which the effects of tighter financial conditions are working their way through aggregate demand, create risks associated with overtightening.
Brainchip derived nearly 96% of its revenue from customers in the Americas in the 2022 financial year, the company's FY22 results show.
Meanwhile, in Australia, Reserve Bank of Australia governor Philip Lowe also hinted at a slowing of rate rises in a speech today. However, he said "further increases in interest rates" would be required over the months ahead.
Lowe added:
We are conscious that there are lags in the operation of monetary policy and that interest rates have increased very quickly. And we recognise that, all else equal, the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises.
The Reserve Bank reiterated it was targeting inflation between 2 to 3%. CPI inflation is now 6.1%, while underlying inflation is 4.9%.
Brainchip share price snapshot
The Brainchip share price has soared more than 100% in the past year, while it has surged 43% year to date.
But in the last month, Brainchip shares have lost nearly 14%.
Brainchip has a market capitalisation of around $1.67 billion based on the current share price.
