The Australian technology sector, including companies such as Xero (ASX:XRO) and Block (ASX:SQ2), is poised to experience its steepest monthly downturn since September 2022.

Much of this downturn contrastingly comes at a time when Wall Street’s own tech stocks are also falling.

The trend follows rhetoric of high interest rates for an extended period from the U.S.

Federal Reserve, resulting in plummeting shares throughout this month.

This month could mark the second consecutive period of decline for tech stocks.

Both Xero and Block’s shares listed on ASX exhibited a revenue drop of 10.4% and 23.4% respectively for this month.

Xero’s present losses could yield it the worst month since September 2022, if the trend persists.

Despite the current negative trend, the overall performance of this sector has yielded a 22.2% rise for this year till the latest closure, contrasting the 0.2% fall seen in the mainstream index.

Xero is a major technology company specializing in cloud-based accounting software.