It's been a very positive start to the trading week so far this Monday for the S&P/ASX 200 Index (ASX: XJO). At this point of the trading day, the ASX 200 has gained a healthy 0.8%, putting the index at just over 7,340 points. But ASX 200 tech stocks like Xero Limited (ASX: XRO) are putting that gain to shame.
The ASX 200 tech sector is currently leading the market in terms of gains. And the top ASX 200 gainers today are almost all tech shares. Xero is in the vanguard here, recording a very pleasing gain of 4.88% so far this session to $79.31 a share:
But it's not just Xero. Block Inc (ASX: SQ2) has notched a 5.4% rise to $120.42 a share. Megaport Ltd (ASX: MP1) is just behind with a 5.1% gain to $5.78 a share. WiseTech Global Ltd (ASX: WTC) has just hit a new record high. And Brainchip Holdings Ltd (ASX: BRN) has rocketed by a whopping 17.65% to 60 cents a share.
So what's going on with ASX 200 tech stocks today that have yielded such stellar performances?
Image source: Getty Images
Why are ASX 200 tech stocks on fire this Monday?
Well, Brainchiop has had some specific developments which seem to be boosting the company's share price. As we covered this morning, Brainchip has announced the launch of its second-generation Akida platform, which seems to be getting investors hot under the collar.
But apart from that, there are no other specific announcements from these ASX 200 tech stocks that seem to be a factor here.
As such, we can probably thank the performance of the US tech markets on Friday night (our time) for the strong start to the week that the tech sector is currently enjoying.
The ASX is usually quite receptive to the movements of the US markets, given their dominance of global financial markets. If US shares have a good run, it's unusual not to see ASX shares follow suit (and vice-versa). And ASX 200 tech stocks seem to be particularly sensitive to the movements of their American counterparts.
Last Friday, the tech-heavy NASDAQ-100 Index (NASDAQ: NDX) had an exceptionally strong session, rising by 2.04% by the end of the trading day. US shares like Amazon, Apple, Microsoft and Tesla all shone, with Amazon, Apple and Tesla rising by more than 3% each. It was a similar story with other prominent US tech shares like Adobe, PayPal and Intuit.
So given the magnitude of these gains enjoyed by US tech investors last week, ASX 200 tech stocks were always going to have a strong day back across the Pacific.
