Several high-profile tech stocks in the S&P/ASX200 Index (ASX: XJO) have crashed lower in early trade after US markets limped towards the end of the week on Friday.
What happened to ASX tech stocks on Monday morning?
It's been the big names that have crashed lower in early trade including the likes of Altium Limited (ASX: ALU), Afterpay Touch Group Ltd (ASX: APT) and Appen Limited (ASX: APX).
Altium has been hit the hardest, with its share price falling 6.43% to $32.76 at the time of writing and arresting its charge towards $40 per share. Even with today's crash, Altium is still up more than 50% so far this year to easily outpace many of its ASX200 peers.
It's been a similar story for Afterpay, which has fallen 3.5% to $19.87 per share and put the brakes on its screaming start to 2019, while Appen was also in the top fallers with a 4.3% drop in its share price.
Despite this morning's slump, the fundamentals for these Aussie tech stocks remain sound and I still think there's plenty of growth left in these stocks in years to come which can justify the lofty earnings multiples that they trade on.
What's happening in the US?
On Friday, the US 10-year Treasury yield fell below that of the 3-month T-Bills for the first time since 2007 in what many are seeing as a sign of impending recession.
This wasn't taken well by markets heading into the weekend, with the Nasdaq closing down 2.5% on Friday in line with other broad US market indices.
It isn't just the yield curve inversion worrying investors either, with a dovish Fed commentary last week indicating that its monetary policy normalisation and quantitative tightening initiatives are on hold until the end of the year.
Across the Atlantic, concerns over European global growth (and potentially recession) also aided the risk-off sentiment with German manufacturing falling for yet another month as the economy continues to be propped up by its services sector.
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