The consecutive rate hikes this year have marred the performance of tech stocks. The tech-heavy Nasdaq composite has lost 29.6% year-to-date. However, following favorable inflation data in October, the Fed is expected to slow down its rate hike aggression, which might bode well for the tech sector.
Moreover, the U.S. labor market remains tight. The U.S. economy added 263,000 jobs in November, despite widespread macro headwinds. Also, tech companies are preparing themselves to beat any potential slowdown. They are strengthening their cash flows and investing in new capabilities to shield themselves from looming recession fears.
