NASDAQ’s tech stock rout continues; how are top five ASX tech stocks faring?

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NASDAQ’s tech stock rout continues; how are top five ASX tech stocks faring?

NASDAQ’s tech stock rout continues; how are top five ASX tech stocks faring?
Image source: ©Miflippo | Megapixl.com

Highlights

 Highlights

  • Australian tech stocks are trading in the red on Thursday after a sharp fall in the NASDAQ.

  • The NASDAQ fell over 3% and the Dow Jones declined for a fifth straight day.

  • The S&P All Technology Index is down nearly 35% on a year-to-date (YTD) basis.

The Australian share market is trading in the red on Thursday, tracking a sharp dip in the tech-heavy NASDAQ, after US inflation data did little to ease investors’ worries over interest rates. The annual consumer price growth in the US changed to 8.3% in April from 8.5% in March even though it was above analysts’ estimates of 8.1%.

The NASDAQ fell over 3% and the Dow Jones declined for a fifth straight day. The tech-heavy US stock market index was mainly pulled down by Apple shares, which dropped over 5%. The NASDAQ’s loss of over 27% so far in 2022 is considerably worse than nearly a 17% dip for the S&P 500.

Tech stocks generally feel pressure as inflation rises. An uptick in consumer prices boosts bond yields, making tech companies’ often-far-off future earnings look less attractive. High inflation also leads to increase in interest rates by central banks.

Higher interest rates adversely impact investments which take benefit out of ultra-low rates, as has been seen during the COVID-19 pandemic. Australian tech stocks have remained under pressure so far in 2022 on account of rises in interest rates worldwide.

The S&P All Technology Index (ASX:XTX) started the year up at 2,984 and dropped to 2,536 by the end of the March quarter, ending with a 15% loss. The index is down nearly 35% on a year-to-date (YTD) basis.

On this note, let’s see how these top five ASX tech stocks (by market capitalisation) are performing today:

Block Inc (ASX:SQ2)

Block, formerly Square Inc, is a global technology company with a focus on financial services. The company has an m-cap of AU$65.08 billion. By 11:55 AM (AEST), the stock was trading at AU$102.81, down 15.21%.

Computershare Ltd (ASX:CPU)

Computershare is into operations of plan services, investor services, business services, stakeholder relationship management services, communication services and technology services. The company has an m-cap of AU$14.47 billion. By 11:55 AM (AEST), the stock was trading at AU$23.65, down 0.63%.

WiseTech Global Ltd (ASX:WTC)

WiseTech Global is a leading global provider of cloud-based software solutions for the international and domestic logistics industries. The company has an m-cap of AU$13.40 billion. By 11:55 AM (AEST), the stock was trading at AU$39.26, down 4.42%.

Xero Ltd (ASX:XRO)

Xero is a cloud-based accounting software platform for small- and medium-sized businesses. The company has an m-cap of AU$13 billion. By 11:55 AM (AEST), the stock was trading at AU$77.54, down 10.85%.

NEXTDC Ltd (ASX:NXT)

NEXTDC is into the development, establishment and operations of data centre facilities. The company has an m-cap of AU$4.48 billion. By 11:55 AM (AEST), the stock was trading at AU$9.85, down 3.43%.

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