Insights

The Nasdaq Index fell 2.7% on Friday. What does that mean for ASX tech shares?

Here’s why ASX tech shares could be in for a bad day…
The post The Nasdaq Index fell 2.7% on Friday. What does that mean for ASX tech shares? appeared first on The Motley Fool Australia. –

Key points

The Nasdaq Index plunged 2.7% on Friday and 7.55% over the course of last week
It was weighed down by the Netflix share price – which fell 21.7% – as well as those of Tesla, Walt Disney, and Amazon
The tech-heavy index’s weak performance could put pressure on ASX tech shares today

ASX technology shares could be in for some pain on Monday after the United States’ tech-heavy Nasdaq Index slumped at the end of last week.

The Nasdaq Composite Index (NASDAQ: .IXIC) tumbled 2.72% on Friday. That brings last week’s plummet to 7.55% – its worst weekly performance since COVID-19 fears saw stocks plunge in March 2020.

Meanwhile, the S&P 500 slipped 1.89% on Friday and 5.68% over the course of last week.

According to reporting by CNBC, the indexes’ fall was due to rising government bond rates and expectations the United States Federal Reserve could soon increase interest rates.

Which shares weighed on the Nasdaq index on Friday?

The Nasdaq Index had a shocking end to last week after it was weighed down by some of its most recognisable names.

Netflix Inc (NASDAQ: NFLX) stock plunged 21.7% on Friday after the company released its fourth-quarter earnings.

At the same time, the Amazon.com Inc (NASDAQ: AMZN) share price tumbled 5.9% and Telsa Inc (NASDAQ: TSLA) slumped 5.2%.

Meta Platforms Inc (NASDAQ: FB) also suffered, slipping 4.2%.

What could that mean for ASX tech shares?

S&P/ASX 200 Index (ASX: XJO) tech shares – and technology stocks that don’t reside on the ASX 200 – tend to follow the Nasdaq Index’s movements. Meaning Australian stocks might be in for some pain today.

Keen-eyed market watchers will likely have their sights set on both the S&P/ASX 200 Info Tech Index (ASX: XJO) and the S&P/ASX All Technology Index (ASX: XTX).

Individual shares that could be worth keeping an eye on include Zip Co Ltd (ASX: Z1P), Xero Limited (ASX: XRO), Appen Ltd (ASX: APX), and TechnologyOne (ASX: TNE).

Also worth noting, ASX shares could be under pressure due to the anticipated release of the consumer price index for the December quarter. It’s set to drop tomorrow morning.

The post The Nasdaq Index fell 2.7% on Friday. What does that mean for ASX tech shares? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Top brokers name 3 ASX shares to sell next week

Top brokers name 3 ASX shares to buy next week

Why Allkem, Nuix, Whitehaven Coal, and Zip shares are sinking today

Zip (ASX:Z1P) share price sinks 8% to 52-week low after brokers weigh in on its Q2 update

Why Anteotech, Appen, Boral, and Kogan shares are rising today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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. owns and has recommended Appen Ltd, Meta Platforms, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd and Xero. The Motley Fool Australia has recommended Amazon, Meta Platforms, Inc., and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!