Here’s why ASX 200 tech shares are having such a stellar end to the week

Happy man and woman looking at the share price on a tablet.Happy man and woman looking at the share price on a tablet.

S&P/ASX 200 Index (ASX: XJO) tech shares are continuing to rebound after their rough start to the week amid a strong session overseas.

The tech-heavy Nasdaq Index took off overnight, with the Nasdaq-100 recording a 3.48% gain for Thursday’s session. Though, it might be giving some of its gains back later today.

Likely in reaction, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is boasting a 1.74% increase on Friday, helping it to recover some of its losses from earlier in the week.

For context, the ASX 200 is currently 0.68% higher.

Let’s take a closer look at what might be going on with ASX 200 tech shares on Friday.

What’s driving ASX 200 tech shares higher?

The ASX 200 tech sector is leading the index on Friday, with the EML Payments Ltd (ASX: EML) share price coming in as its top performer.

The payments provider’s stock plummeted 38.5% on Tuesday after the company downgraded its guidance. Today, it’s back in the green, gaining 5.34% amid the release of its response to an ASX query regarding Tuesday’s news.

The Life360 Inc (ASX: 360) share price is on a similar trajectory. It’s up 4.86% today following Wednesday’s 29.4% tumble.

Other ASX 200 tech stocks in the green today include Novonix Ltd (ASX: NVX), Computershare Limited (ASX: CPU), and Xero Limited (ASX: XRO).

They’ve gained 3.52%, 2.73%, and 1.81% respectively.

Looking to the broader ASX tech sector, the S&P/ASX All Technology Index (ASX: XTX) is currently up 1.79%.

The sector’s performance follows a similarly strong session on the tech-heavy Nasdaq Index overnight.

Most of Australia woke up to the Nasdaq-100 boasting a 3.48% gain. But tomorrow’s session overseas might not be so pretty.

The Nasdaq Index struggled in after-hours trade on Thursday evening, reports my international colleague.

Its slump was driven by tech giants, Apple Inc (NASDAQ: APPL) and Amazon.com Inc (NASDAQ: AMZN). The pair both released quarterly earnings on Thursday.

If ASX 200 tech shares can hold onto their current gains, the sector will close Friday’s session 2.1% lower than it was at end of last week.

The post Here’s why ASX 200 tech shares are having such a stellar end to the week appeared first on The Motley Fool Australia.

Should you invest $1,000 in EML Payments right now?

Before you consider EML Payments, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EML Payments wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Brooke Cooper 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 Amazon, Apple, EML Payments, Life360, Inc., 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 has positions in and has recommended EML Payments and Xero. The Motley Fool Australia has recommended Amazon and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/TMwbBaQ

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s