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 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.

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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.

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