NEXTDC Ltd (NXT.AU) saw its stock price plummet by 5.01% in intraday trading, as Australian technology stocks faced a broad sell-off tracking the decline on Wall Street. The data centre firm's shares were caught in a sector-wide downturn that saw the Australian tech sub-index fall as much as 2.4% to its lowest level since April 11.
The sharp decline in NEXTDC's stock price can be attributed to several factors affecting the broader tech sector. U.S. stocks tumbled overnight, with President Donald Trump's intensified criticism of Federal Reserve Chair Jerome Powell fueling concerns over the Fed's independence. This, coupled with ongoing trade war uncertainty, has created a ripple effect in global markets, particularly impacting technology stocks.
NEXTDC, as a key player in the Australian tech sector, appears to be more severely affected than the sector average. While the tech sub-index was down 2.4%, NEXTDC's 5.01% drop suggests that investors may be particularly cautious about data centre firms in the current market environment. The company's year-to-date performance, along with the broader tech sector which is down nearly 18.4% for the year, indicates ongoing challenges for technology stocks in 2025.
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