Aussie tech stocks hit over 5-mth low as Fed sees sooner-than-expected rate hikes

Altium

06/01/2022 24:18

** Australian tech stocks  .AXIJ  drop as much as 4.34% to
their lowest since July 28, 2021
    ** Sub-index tracks overnight losses on the tech-heavy
Nasdaq  .IXIC  after minutes of the U.S Federal Reserve's last
meeting signalled the central bank may need to raise rates
sooner  .N 
    ** Rising interest rates increase borrowing costs for
businesses and consumers, and higher rates can depress stock
multiples, especially for technology and other growth stocks
    ** Buy now, pay later co Afterpay  APT.AX  tumbles as much
as 11% to its lowest since Sept. 2020
    ** Electronics design softare maker Altium  ALU.AX  and
network operator Megaport  MP1.AX  drop 4.0% and 4.2%,
respectively
    ** WiseTech Global  WTC.AX  falls 3.6%, while Xreo  XRO.AX 
slides 3%

 (Reporting by Navya Mittal)
 ((Navya.Mittal@thomsonreuters.com;))