WiseTech Global Ltd (WTC.AX) shares plunged 5.02% during Friday's intraday trading session, as the Australian technology sector came under heavy selling pressure amid renewed concerns over artificial intelligence spending by major U.S. tech firms.

The sell-off was triggered by overnight earnings updates from large U.S. technology companies that revived investor anxiety about heavy AI-related cash burn. This sent Wall Street tech stocks lower, with the ripple effect extending to the Australian market where the local tech sub-index fell as much as 2.9% to its lowest level since mid-April.

WiseTech Global was among the hardest hit in the sector, with peers Xero and Megaport also recording significant declines. The broader S&P/ASX 200 index was down 0.6% as the tech rout, combined with weakness in mining stocks due to softer commodity prices, weighed on the benchmark.