S&P/ASX 200 Index (ASX: XJO) tech shares are being slammed on Tuesday after the Nasdaq Composite (NASDAQ: .IXIC) continued to tumble into market crash territory overnight.
The tech-heavy US-based index extended its slump in Monday's session overseas, recording a 4.29% fall and bringing its losses for the last six weeks to 20.5%.
Seemingly in reaction, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is plunging 1.25% at the time of writing, having sunk by almost 5% in early trading. It's being dragged down by most of the ASX's prominent tech shares.
For context, the ASX 200 is recording a 1.63% slip right now.
Let's take a closer look at what's going on with the Nasdaq Composite and its impact on ASX 200 tech stocks.
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ASX 200 tech shares' Tuesday tumble
ASX 200 tech shares are suffering after the US tech-heavy index tumbled amid continued concerns about rising interest rates.
The Nasdaq Composite ended yesterday's session in the red, as did the S&P 500 Index (SP: .INX) and the Dow Jones Industrial Average Index (DJX: .DJI). The latter indexes fell 3.2% and 1.99% respectively on Monday.
Their continued downturn follows the US Federal Reserve's decision to raise interest rates by 0.5% last week, according to reporting by Reuters.
Nasdaq giant Tesla Inc (NASDAQ: TSLA) was one of the index's biggest weights overnight, recording a 9% fall.
Back on the ASX on Tuesday, the tech sector is being dragged down by Block Inc (ASX: SQ2). Its share price is tumbling 10.27%.
Meanwhile, stock in NextDC Ltd (ASX: NXT), Computershare Limited (ASX: CPU), Novonix Ltd (ASX: NVX), and Altium Limited (ASX: ALU) are recording drops of 4.6%, 2.6%, 2.2%, and 1.7% respectively.
Though, it's not all dire among the ASX's biggest tech stocks.
Shares in Life360 Inc (ASX: 360), Tyro Payments Ltd (ASX: TYR), and Iress Ltd (ASX: IRE) are leading the sector. They're gaining around 3.9%, 2.4%, and 2.1% respectively.
The Xero Limited (ASX: XRO) share price is also in the green.
The ASX 200 tech sector has plummeted more than 23% since its most recent high in early April. It's also more than 33% lower than it was at the start of 2022.
