What’s going so wrong for ASX 200 tech shares on Wednesday?

It’s been a mildly negative day of trading for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday. At the time of writing, the ASX 200 has lost 0.27% and is back to around 7,011 points. But ASX 200 tech shares are doing far worse.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently the worst performing ASX 200 sector by far today. The XIJ Index is presently down a painful 3.52%, far worse than any other ASX 200 sector.

And as one might expect, this has led to many ASX 200 tech shares recording some heavy losses today.

ASX 200 tech shares lead the share market’s losses

Block Inc (ASX: SQ2) and Life360 Inc (ASX: 360) seem to be leading the charge. These tech shares are currently down a painful 5.55% and 6.3%, respectively

But we also have Computershare Limited (ASX: CPU) down more than 5% and Megaport Ltd (ASX: MP1) down more than 4.5%.

REA Group Limited (ASX: REA) and Xero Limited (ASX: XRO) have both fallen by over 3% today.

Lots of pain on the ASX 200 tech share front.

So what’s going on here? Why do investors have a bee in the proverbial bonnet over the ASX 200 tech sector today?

Well, it seems the most likely explanation comes from the United States markets. Last night was a pretty grim session over in the US for tech shares. The tech-heavy NASDAQ-100 (NASDAQ: NDX) ended up dropping 1.15%.

But we had some famous individual shares falling by far more. Electric car and battery manufacturer Tesla dropped 2.44%. Chip maker NVIDIA fell by almost 4%, as did Salesforce Inc.

ASX 200 tech shares tend to take their queue from their US counterparts, perhaps more than any other ASX sector. Thus, we often see corresponding moves, in both directions, on the ASX following sessions on the US markets.

This could be what we are witnessing in the ASX 200 tech sector this Wednesday.

The post What’s going so wrong for ASX 200 tech shares on Wednesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX investors are still feeling confident. Here’s why
• Why is ASX 200 gold share St Barbara sliding 10% today?
• ASX 200 better buy: Wesfarmers or Woolworths?
• Guess which ASX 200 share just upped its dividend by 25%
• Computershare share price plunges 6% following FY22 results

Motley Fool contributor Sebastian Bowen has positions in Nvidia and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Life360, Inc., MEGAPORT FPO, Nvidia, Salesforce, Inc., Tesla, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended MEGAPORT FPO, Nvidia, REA Group Limited, and Salesforce, Inc. 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/mI7lyit