What’s happening with ASX 200 tech shares today?

Will last night’s rebound in the US tech-heavy Nasdaq help ASX 200 tech shares make up for yesterday’s steep losses? Let’s take a look.
The post What’s happening with ASX 200 tech shares today? appeared first on The Motley Fool Australia. –

tech asx share price represented by man wearing smart glasses

Yesterday, the S&P/ASX 200 Info Tech (ASX: XIJ) was the worst-performing index, slumping by more than 4% compared to the S&P/ASX 200 Index (ASX: XJO) that surged in the afternoon to finish 0.86% higher. 

High profile ASX 200 growth shares across the board struggled to find headway amid the selloff.

At the larger end of town, big losses came from the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price, which slumped 8.50% to give back all its reporting season gains, the Afterpay Ltd (ASX: APT) share price fell 7.20% and Seek Limited (ASX: SEK) is now down for the year after falling 7.10%. 

Elsewhere, big winners from last year, including Lynas Rare Earths Ltd (ASX: LYC), Temple & Webster Group Ltd (ASX: TPW) and JB Hi-Fi Limited (ASX: JBH), also gave up substantial gains. 

Trigger for yesterday’s selloff 

One thing that could be the catalyst for a tech and growth-driven selloff is rising bond yields.  

In the United States, the 10-year treasury yield is often regarded as the risk-free rate, given the US government has never defaulted on its debt obligations. The 10-year treasury yield previously took a nosedive from 1.95% to 0.40% between December 2019 to March 2020.

In more recent months, treasury yields have been on a tear, soaring from lows of 0.50% in August 2020 to 1.36% this month.

Higher yields signal higher borrowing costs and inflation, which could negatively affect businesses and share market performance. 

The shares that led the market higher when interest rates were plummeting are now the ones most vulnerable as interest rates rise. 

Conversely, value sectors, including financials, utilities, real estate and commodities, can often withstand or benefit from higher interest rates. 

This was evidenced by the 0.86% increase in the ASX 200 yesterday, with the big four banks, miners, oil and REITs doing the heavy lifting. 

US tech shares rebound before close 

The tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC)  found itself down as much as 4% last night but managed to rebound in the last few hours of trade to close 0.96% higher. 

ASX 200 tech shares have struggled to follow the Nasdaq for a rebound, with the S&P/ASX Information Technology index experiencing two consecutive red days, down 1.98% at the time of writing. 

Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited, SEEK Limited, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s happening with ASX 200 tech shares today? appeared first on The Motley Fool Australia.

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.

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 App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!