Xero Ltd (XRO.AU) saw its stock price plummet by 7.31% in Monday's trading session, as Australian technology stocks faced a significant selloff. The decline comes as the broader Australian tech sector tracks the downward trend in US stock futures, which opened sharply lower late on Sunday.
The Australian tech sector, represented by the S&P/ASX All Technology Index (AXIJ), slipped as much as 8.3% to its lowest level since February 15, 2024. This decline puts the sector on track for its biggest intraday percentage loss since February 24. Xero's 7.31% drop outpaced the 4.5% decline mentioned in earlier reports, indicating a worsening situation for the company as the trading day progressed.
The selloff in tech stocks is largely attributed to the ripple effects of recent US market developments. Investors are reacting to the continuation of a two-day selloff that has already wiped trillions from equity values globally. This market turbulence was triggered by US President Trump's recent tariff announcement, which has raised concerns about global trade tensions and economic growth. As a result, Australian tech stocks, including Xero, are experiencing heightened volatility and downward pressure as investors reassess risk in the sector.
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