Tech stocks weigh on ASX, following Nasdaq selloff
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The news: Technology was the only sector in red on the ASX today, following the Nasdaq's sharp decline overnight.
The numbers: Information technology was down 0.79% by 1:30pm AEST, while tech majors Computershare (-3.5%) and Wisetech Global (3.1%) were the two worst performing stocks across the ASX 200. NextDC (-1.31%) and Xero (-0.58%) also fell.
In the US, the Nasdaq slumped 1.95%, while the S&P 500 lost 0.88% and the Dow Jones Index losing added 0.08%.
The context: The tech-heavy Nasdaq ended sharply lower overnight as investors sold off Nvidia, Apple and Tesla and rotated into smaller companies on rising bets the Federal Reserve will cut rates in September, Reuters reported.
Despite signs of receding inflation, Wall Street's most valuable companies declined, with Microsoft and Amazon each losing more than 2% and Meta Platforms shedding about 4%.
Tesla fell 8.4%, its biggest one-day percentage drop since January, after Bloomberg reported that the company is delaying the launch of robotaxi by about two months to October.
Meanwhile, the small cap Russell 2000, which has lagged the benchmark index this year, climbed 3.6% to close at its highest since March 2022, with investors betting rate cuts would improve conditions for smaller companies.
The source: Reuters
