The Australian share market is a sea of red this morning following a selloff of global markets overnight after the trade war between the United States and China intensified.
According to CNBC, the Dow Jones Industrial Average dropped 2.4%, the S&P 500 fell 2.4%, and the Nasdaq tumbled 3.4% after China decided to raise tariffs on some U.S. goods. The 3.4% decline by the Nasdaq index was its biggest one-day loss of 2019.
Amongst the worst performers on the Nasdaq were the popular FAANG stocks.
Facebook shares fell 3.6%, Amazon shares also dropped 3.6%, Apple shares sank 5.8% lower, Netflix shares tumbled 4.4%, and Google (Alphabet) shares dropped 2.8% lower.
Unsurprisingly, many of Australia's leading tech shares have followed the lead of their U.S. counterparts and dropped lower this morning.
Here is the state of play in the tech sector in early trade:
The Afterpay Touch Group Ltd (ASX: APT) share price has tumbled 5% lower.
The Altium Limited (ASX: ALU) share price is down 4%.
The Appen Ltd (ASX: APX) share price has fallen 5.5%.
The Bravura Solutions Ltd (ASX: BVS) share price is down 1.5%.
The Pro Medicus Limited (ASX: PME) share price has dropped 3.5%.
The WiseTech Global Ltd (ASX: WTC) share price has fallen 3.5%.
The Xero Limited (ASX: XRO) share price is down 2%.
Should you buy the dip?
Unless the United States and China come to an agreement in the near future, I suspect that trade war concerns could make the market more volatile than normal over the coming weeks and months.
But I wouldn't let that put you off picking up shares in some of these high quality growth companies. Although all of them are arguably great long-term buy and hold options, my top picks in the bunch are Altium, Appen, and Xero.
I believe these three tech stars have the potential to grow significantly over the next decade and generate strong returns for their shareholders.
