The S&P/ASX 200 Index (ASX: XJO) is, unfortunately, having a rather unpleasant end to the trading week so far this Friday. At the time of writing, the ASX 200 has lost a chunky 0.34%, slipping back under 7,300 points. But the carnage is far worse when it comes to ASX tech shares.
A look at the S&P/ASX Information Technology Index (ASX: XIJ) gives you an idea. This tech-tracking index is currently down a nasty 2.73%.
So it will come as no surprise to see that ASX tech shares are amongst the worst performers of today’s session thus far. Take leading ASX tech share Xero Limited (ASX: XRO). Xero shares have tanked by an awful 4.08% so far today, down to $122 a share. Keep in mind that it was only yesterday that Xero hit a new 52-week high of $127.68.
Similarly, fellow tech darling WiseTech Global Ltd (ASX: WTC) has seen its share price lose 2.48% today, with the company trading at $79.95 at present.
Block Inc (ASX: SQ2) shares are down nearly 2%, while Seek Ltd (ASX: SEK) and TechnologyOne Ltd (ASX: TNE) shares are both down around 3%.
So you get the picture – it is certainly a day most ASX tech share investors would rather forget so far.
But why are ASX tech shares bearing the brunt of today’s disappointing market performance?
Why are investors selling out of ASX tech shares this Friday?
Well, it’s not entirely clear. But we can take an educated guess — it likely has something to do with the performance of US tech shares last night (our time).
Thursday’s session on the US markets was a dire one for American tech stocks. The tech-heavy NASDAQ Composite Index (NASDAQ: .IXIC) retreated by a nasty 2.05%. This was led by most of the major tech shares, with the likes of Microsoft losing 2.3% and Amazon giving up a chunky 4%.
But it was electric vehicle and battery manufacturer Tesla that was leading the charge down. Tesla stock cratered by 9.74% last night after investors digested the company’s latest quarterly earnings report. As my Fool colleague James covered today, investors were dismayed to learn that Tesla’s profit margins had retreated to 9.6%.
Streaming giant Netflix also contributed to the market’s woes, losing 8.41% last night after reporting its own poorly-received earnings this week.
Considering these moves across the Pacific, it was always going to be a hard day for ASX tech shares this Friday.
