ASX 200 tech shares are staging a remarkable recovery today

Woman looks amazed and shocked as she looks at her laptop.Woman looks amazed and shocked as she looks at her laptop.

What a day it has been for ASX shares. The S&P/ASX 200 Index (ASX: XJO) has lost another 1.38% so far today at the time of writing and is now only a few points above the 7,000 mark. For most of the morning, it was ASX tech shares that had borne most of the brunt of this sell-off, as is typical these days. We saw shares like Block Inc (ASX: SQ2), Zip Co Ltd (ASX: ZIP), WiseTech Global Ltd (ASX: WTC), and Xero Limited (ASX: XRO) absolutely slaughtered.

Soon after open, the S&P/ASX All Technology Index (ASX: XTX) dropped as much as 4.4%, reflecting these losses.

But something strange has happened as the trading day has stretched on. ASX tech shares have staged something of a remarkable recovery. Although the All Tech Index was down 4.4% at one point, it is now only down 0.2% at the time of writing. What’s more, the All Tech Index broke even around midday and was in the green for a time.

ASX tech shares bounce back

We see this index recovery reflected in many ASX tech share prices. Xero is a perfect example. The cloud-based accounting software provider was down around 3.6% earlier this morning and hit a new 52-week low of $81.27. But now, Xero shares have bounced back and are trading at just over $87 now, up 3.23% for the day.

WiseTech shares have followed a similar pattern, recovering from close to a 7% loss to now boasting a near-3% gain.

It is unknown what is causing this extreme volatility in the ASX tech shares space. Perhaps investors have just decided that the falls of this morning went a little too far. And this is only over the course of one trading day. Who knows what the rest of the week will bring.

The post ASX 200 tech shares are staging a remarkable recovery today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Xero right now?

Before you consider Xero, 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 Xero 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

Motley Fool contributor Sebastian Bowen 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 Block, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. 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/f9CHSX4

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