The Nasdaq Composite Index (NASDAQ: .IXIC) closed down 1.04% yesterday, overnight Aussie time.
And the S&P/ASX All Technology Index (ASX: XTX) looks to be following its lead.
With the majority of ASX tech shares in the red, the All Tech Index is down…
So, what went wrong on the Nasdaq?
Here's what investors were considering on the Nasdaq
The United States tech sector was broadly under pressure yesterday as investors await the latest inflation print from the world's top economy.
That's due out on Wednesday in the US, so tonight after markets close for us down under.
Tech stocks are often priced with future earnings in mind, leaving the Nasdaq particularly susceptible to pressure from higher interest rates. While the market is still pricing in a pause from the Federal Reserve next week, odds remain even for another (and likely final) rate hike in November.
Commenting on the Nasdaq and wider investment markets, Lauren Goodwin, portfolio strategist at New York Life Investments said (courtesy of Bloomberg):
In our view, it may be a good moment for investors to consider allocation moves that prepare for a re-firming of inflation this fall. For example, cyclical growth equity sectors soared on hopes of a divine disinflation and near-term Fed cuts. Yet, if inflation re-emerges, these sectors might give up some of their year-to-date gains.
Three tech titans take a tumble
Some of the world's top tech names helped drag the Nasdaq lower overnight.
The tech giant unmasked its new iPhone 15 with a range of novel new features. But there were no real surprises here. And as often happens with Apple stock, shares fell on the day of the release. Apple shares are still up 41% in 2023.
Elon Musk's Tesla Inc (NASDAQ: TSLA) also dragged on the Nasdaq, ending the day down 2.2%. That appears to be a case of profit-taking after Tesla shares surged 10.1% on Monday.
That came following an uber-bullish assessment of Musk's EV company from Morgan Stanley analyst Adam Jonas. Optimistic about the AI potential of Tesla's Dojo supercomputer Jones increased his price target for Tesla's shares by a whopping 60% to $400 per share. That's some 45% above yesterday's closing price.
Tesla shares are up 147% in 2023.
Which brings us to one of the biggest headwinds battering the Nasdaq overnight, Oracle Corp (NYSE: ORCL).
The tech giant ended the day down a painful 13.5% following a decrease in its cloud sales. Despite that big retrace, Oracle shares remain up 31% in 2023.