The S&P/ASX 200 Index (ASX: XJO) is having another great start to this day’s trading thus far. At the time of writing, the ASX 200 is up a healthy 0.41% at just under 7,550 points. Although many ASX shares are in the green today, it seems ASX tech shares are leading the charge.
For one, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has recorded the highest gain of any ASX sector so far today. It’s currently up a pleasing 3.22%. But we are also seeing this flow into the share prices of many ASX tech shares. Take Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX). These ASX tech stalwarts are up 4.17% and 2.6% respectively so far today. Xero Limited (ASX: XRO) is up 4.35%. And leading the tech sector’s gains is Block Inc (ASX: SQ2), up a whopping 6.42% so far today to $191.80 a share.
So why are ASX tech shares powering ahead so enthusiastically?
ASX tech shares rising? Thank Elon Musk…
Well, we can’t be certain. But these ASX tech share moves likely have at least something to do with the blockbuster announcement last night (our time) that Tesla Inc (NASDAQ: TSLA) CEO Elon Musk made.
Musk, the world’s richest person, has long been known for his, er, market antics. Musk dropped a bombshell announcement last night, revealing he has just purchased a US$3.68 billion stake in the social media company Twitter Inc (NYSE: TWTR). As my Fool colleague Mitchell covered this morning, Musk now owns a 9.2% stake in Twitter, making him the company’s single largest shareholder. He now owns more than four times as many Twitter shares as the company’s founder, Jack Dorsey. Dorsey is also a founder of Block, as it turns out.
So this move saw the Twitter stock price jump a massive 27% by the close of the US markets. Tesla stock was up more than 5% as well, with many other US tech shares also finishing higher.
It’s likely these events and market moves are at least partially responsible for the subsequent enthusiasm we see with ASX tech shares today. Especially with the ASX-listed Block shares. Never a dull moment with Elon Musk.
The post Why are ASX tech shares having such a stellar day? appeared first on The Motley Fool Australia.
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More reading
- Block (ASX:SQ2) share price jumps 6% despite reporting a data breach
- Birds are singing as the Twitter share price soars 27% on Elon Musk’s investment
- Should you buy fractional shares of Tesla before the potential stock split?
- These were the best and worst performing ASX sectors in March
- Should investors worry about Tesla’s Q1 deliveries miss?
Motley Fool contributor Sebastian Bowen owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., Tesla, Twitter, and Xero. The Motley Fool Australia owns and has recommended Block, Inc. and Xero. 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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