The Australian technology sub-index is witnessing a significant slump, dipping as much as 2.5%, a record that is lowest since June 8.

The sub-index is on a trajectory for the worst weekly plunge since September of the previous year.

Following the trend, major tech shares in Wall Street are also tumbling amid growing concerns that the U.S.

Federal Reserve’s monetary policy could remain stiff for an extended period leading to a sharp sell-off.

Majors like Xero (ASX:XRO) and ASX-listed Block (ASX:SQ2) shares have dropped 1.6% and 3.4%, respectively.

Wisetech Global (ASX:WTC) has also experienced a dip of 1.4%.

Despite the bleak outlook, the stock has recorded a 25.1% rise this year as of the last closure.

Xero (ASX:XRO) is an Australian strategy company that capitalizes on innovative technology to provide business solutions.