ASX 200 tech shares are slightly in the red today, however, not all technology stocks are falling. Despite the NASDAQ dropping in the US on Tuesday, it is picking up in after-hours trade. This follows strong earnings results from Microsoft Corporation (NASDAQ: MSFT)and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG).
Among the technology shares falling on the ASX today are Block Inc (ASX: SQ2), WiseTech Global Ltd (ASX: WTC), and NextDC (ASX: NXT). However, the Xero Ltd (ASX: XRO) share price is up in morning trading.
So what is going on with Australian technology shares today?
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Why are ASX 200 tech shares falling?
At the time of writing, Block is down 4.66%, WiseTech Global is 3.31% lower, and NextDC is 0.95% in the red. Meanwhile, the Xero share price is 0.44% higher. Block's US listing also descended 7% on the New York Stock Exchange on Tuesday.
In Australia, the S&P/ASX All Technology Index (ASX: XTX) is currently down 0.86% while the S&P/ASX 200 Information Technology Index (ASX: XIJ) is also 0.83% lower.
This follows the technology-heavy NASDAQ Composite dropping 1.87% in the US on Tuesday. Amazon.com Inc (NASDAQ: AMZN) was among the biggest fallers, slipping 5.23%, while Meta Platforms Inc (NASDAQ: META) slumped 4.5%.
However, in after-hours trade on the NASDAQ, technology shares are picking up on the back of earnings reports from tech giants Microsoft and Alphabet.
Microsoft reported its revenue jumped 18% to $198.3 billion in FY22. Net income soared 19% while diluted earnings per share increased 20%.
Meantime, Alphabet reported revenue of $69.7 billion in the second quarter, up 13% year on year. Microsoft shares are nearly 4% higher in after-hours trade on the NASDAQ while Alphabet shares are up nearly 5%.
However, data released on Tuesday showed consumer confidence fell in the US in July amid inflation and rising interest rate fears. In comments cited by Reuters, Spartan Capital Securities chief market economist Peter Cardillo said:
The majority of companies that reported today beat earnings, and that's been the case. But of course there have been some warnings, and that's what the market is focusing on.
The US Federal Reserve is due to make a decision on interest rates on Wednesday.
