Why did ASX 200 tech shares tank 12% while utilities stocks rose strongly last week?

There was market turbulence in the final week of earnings season.

Woman and man calculating a dividend yield.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX 200 tech shares had a shocker last week, falling 12.28%, while utilities stocks led the market sectors with a 4.31% gain.

The S&P/ASX 200 Index (ASX: XJO) fell 1.49% in a turbulent final week of earnings season.

The benchmark index closed the week at 8,172.4 points on Friday.

Only three of the 11 market sectors finished the week in the green.

Let's recap.

Tech shares dive while 'safe haven' utilities rise

ASX tech shares followed Wall Street's lead last week as concerns about weakness in the United States economy weighed on market sentiment.

US consumer confidence data revealed a three-and-a-half-year low last week.

Also, confirmation that the US will start a 25% tariff on Canada and Mexico from 4 March and double its new tariff on China to 20% prompted concerns that inflation may be reignited.

Last week, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fell by just over 5% over the first four days of trading.

Contributing to this was a 10.5% decline in Nvidia stock after the artificial intelligence (AI) chip maker failed to impress the market with its first-quarter results.

ASX tech shares followed suit, with the sector recording falls every day last week.

On top of this were company-specific factors that dragged the broader ASX tech sector down.

The largest stock in the ASX 200 tech sector, WiseTech Global Ltd (ASX: WTC), fell 9.81% to $89.50 on Friday after four independent directors resigned last week.

Wisetech said their departure "followed intractable differences in the Board and differing views around the ongoing role of the Founder and Founding CEO, Richard White".

The directors' resignation took effect after the company released its 1H FY25 results on
Wednesday.

Wisetech reported a 34% rise in underlying net profit after tax (NPAT) to US$112.1 million.

The news saw the ASX 200 tech share briefly spike 8% before closing the session just 1.84% higher.

Other major tech sector companies also experienced significant share price falls last week.

TechnologyOne Ltd (ASX: TNE) shares fell 8.08% to $29.47, and Codan Ltd (ASX: CDA) shares dropped 5.7% to $15.23 despite no price-sensitive news from either tech company last week.

Nextdc Ltd (ASX: NXT) shares dropped 4.1% to finish the week at $13.34 per share. Investors were unenthused about the data centre operator's 1H FY25 report on Monday.

The Xero Ltd (ASX: XRO) share price fell 3.47% to $170.73 on Friday despite no price-sensitive news from the accounting software company.

Meantime, the ASX 200 utilities sector, which is seen as a safe-haven sector due to companies' reliable earnings in all types of economic conditions, rallied last week.

Among the 22 stocks comprising the sector, APA Group (ASX: APA) shares were among the best performers of the week, streaking 11.82% higher to close at $7.38 on Friday.

The APA share price surged on the back of the energy infrastructure company's 1H FY25 report released on Monday.

APA reported a 7.1% increase in revenue to $1.36 billion and a 9.1% lift in underlying pre-tax profit to $1.02 billion.

Origin Energy Ltd (ASX: ORG) shares also rose by 1.34% to $10.94 on Friday despite no price-sensitive news last week.

Meridian Energy Ltd (ASX: MEZ) shares also closed in the green, up 0.38% over the week to $5.30.

New Zealand's largest electricity producer released its 1H FY25 report on Wednesday, revealing a net loss after tax of $121 million compared to an NPAT of $191 million in 1H FY24.

The Meridian Energy share price fell on Wednesday and Thursday, but a surge during late afternoon trading on Friday brought the stock into the green for the week.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Utilities (ASX: XUJ)4.31%
Financials (ASX: XFJ)1.89%
Energy (ASX: XEJ)0.78%
Industrials (ASX: XNJ)(0.35%)
Consumer Staples (ASX: XSJ)(0.57%)
Communication (ASX: XTJ)(0.61%)
Healthcare (ASX: XHJ)(0.97%)
Consumer Discretionary (ASX: XDJ)(2.43%)
Materials (ASX: XMJ)(5.31%)
A-REIT (ASX: XPJ)(5.63%)
Information Technology (ASX: XIJ)(12.28%)

Should you invest $1,000 in Apa Group right now?

Before you buy Apa Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Apa Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Apa Group, WiseTech Global, and Xero. The Motley Fool Australia has recommended Nvidia and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices.
Broker Notes

Macquarie tips 20% upside for this ASX 200 industrials stock

Let's see what the broker is saying about this stock following an update.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

CBA shares hit a new $176 record high. Too late to buy?

What can stop this bank now?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Adriatic Metals, Catapult, Seek, and TechnologyOne shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »

a group of business people sit dejectedly around a table, each expressing desolation, sadness and disappointment by holding their head in their hands, casting their gazes down and looking very glum.
Mergers & Acquisitions

This ASX 300 share is sinking 33% on takeover collapse fears

Is this takeover dead? Let's find out what is happening.

Read more »