Investors are witnessing a significant drop in technology shares following the Wall Street’s downturn brought about by heightened interest rate woes.

Among them, shares of the Australian technology firms tracked in the ASX tech index fell by an astounding 1.8% to A$1,746.4, reflecting the largest intraday percentage drop since October 3.

The sub-index joined the dropping tech-companies trend on Nasdaq after U.S.

data showed a heftier than anticipated rise in consumer prices.

This consolidates the narrative of higher-for-longer rates touted by the Federal Reserve.

Notably, shares of Xero (ASX:XRO), a leading accounting software producer, fell by a substantial 2.3%, the largest intraday percentage loss since September 26.

Similarly, shares of the ASX-listed, buy-now-pay-later company, Block (ASX:SQ2) dipped by up to 2.8% to A$45.121.

Another software producer, WiseTech Global (ASX:WTC), shed up to 1.6% of its value, representing the largest slip since October 4.

In a striking contrast to the overall trend, tech stocks are on track to register gains for the first time in four weeks, having already added nearly 3% to their value this week.

The Australian technology index was up by 26.6% year-to-date at the last close, compared to a 0.7% rise in the benchmark S&P/ASX 200 index.

Xero (ASX:XRO) is a cloud-based accounting software platform for small and medium-sized businesses.