Technology shares are dragging the ASX 200 down on Tuesday

Man looks frustrated looking at computer screen in an office

The S&P/ASX 200 Index (ASX: XJO) is slipping today, weighed down by the S&P/ASX 200 Information Technology Index (ASX: XIJ).

At the time of writing, the ASX 200 is down 0.9%, having fallen 66 points.

Meanwhile, the ASX 200 tech sector is down a whopping 2.4% or 58 points.

The S&P/All Technology Index (ASX: XTX) is also down 2% at the time of writing.

The dip is being led by the Megaport Ltd (ASX: MP1) share price and its 6% fall.

Additionally, the share prices of Xero Limited (ASX: XRO), Nextdc Ltd (ASX: NXT), and WiseTech Global Ltd (ASX: WTC) are down 4%, 3%, and 2% respectively.

In fact, Link Administration Holdings Ltd (ASX: LNK) is the only member of the information technology sector in the green today. The company’s share price is up 0.5% despite no price-sensitive news having been released to the ASX.

The dips come despite no price-sensitive news having been released by any of the above companies.

So, what’s weighing so heavily on the index on Tuesday? Let’s take a look.

What’s dragging ASX 200 tech shares down?

Today’s fall from ASX tech shares follows a similar slide seen in US markets overnight.

While most of Australia slept, the S&P 500 (IndexSP: .INX) – the 500 largest companies listed on US markets – fell 0.28%.

Like today’s ASX 200, it was dragged down by tech shares. The US tech sector fell 1% on Monday (Tuesday AEST).

At the same time, the tech-heavy Nasdaq Composite fell 0.52%.

Some of their weights included stock in tech giants Alphabet Inc Class A (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Microsoft Corporation (NASDAQ: MSFT), which fell 0.8%, 1%, and 1.7% respectively.

Also worth noting, the US’s healthcare sector fell 1.4% overnight. That trend is also being mirrored on the ASX today.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is down 2.8% at the time of writing.

The post Technology shares are dragging the ASX 200 down on Tuesday appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, Link Administration Holdings Ltd, MEGAPORT FPO, Microsoft, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, Link Administration Holdings Ltd, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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