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Here’s why ASX 200 tech shares (ASX:XTX) outperformed today

ASX tech shares have taken a turn for the better today.
The post Here’s why ASX 200 tech shares (ASX:XTX) outperformed today appeared first on The Motley Fool Australia. –

ASX 200 tech shares are in the green today, following in the footsteps of their counterparts in the United States.

The S&P/ASX All Technology Index (ASX: XTX) gained 1.66% today to 2,840.70 points at market close. This was 1% more than the benchmark S&P/ASX 200 Index (ASX: XJO), which jumped 0.66%.

Let’s take a look at why ASX technology shares performed well today.

What is happening to ASX tech shares?

The All Technology Index recovered after a tough start to the year. The index fell 6.39% between market close on 31 December and market close on 11 January before clawing back some of the losses today.

One clue to the trend may be the performance of US markets. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) gained 1.73% today to 9,146.78 points.

Apple Inc (NASDAQ: AAPL) gained 1.68%, while Amazon (NASDAQ: AMZN) jumped 2.4%. US tech shares rebounded after a sell-off in the new year due to rising interest rate fears, CNBC reported.

The Australian technology sector often follows the Nasdaq index. Afterpay Ltd (ASX: APT) was one of the top ASX 200 tech shares on Wednesday, gaining 4.75%.

The company’s shares surged after the Bank of Spain approved Block’s takeover of the company.

Other ASX 200 and All Technology Index shares in the green today included Appen Ltd (ASX: APX), up 5.52%, and Megaport (ASX: MP1), which hiked 3.43%.

Altium Limited (ASX:ALU) also climbed 1.69%, Novonix (ASX:NVX) jumped 0.95%, and TechnologyOne (ASX: TNE) gained 1.05%. None of these companies released any news to the market today.

Foolish takeaway

The All Technology Index climbed 3.60% the past year, underperforming the broader ASX 200 index by roughly 8 percentage points.

In the past month, the All Technology index is down 6.45% and 6.78% lower in the last week.

Since market close on 31 December, it has fallen 4.83%.

The post Here’s why ASX 200 tech shares (ASX:XTX) outperformed today appeared first on The Motley Fool Australia.

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More reading

Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher

How is the Appen (ASX:APX) share price performing so far this year?

ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded

Afterpay-Block takeover approved: Here’s what happens to your shares

Down 10% already in 2022. Is the Altium (ASX:ALU) share price now a buy?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, and Appen Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. 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 Bruce Jackson.

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