It has been a bruising year for the equity investors, with the S&P 500 down more than 16% year-to-date. The Fed's hawkish stance to curb surging inflation and the consequences of the Ukraine-Russia war have caused a massive tech sell-off over the past few weeks. Despite Friday's 4% relief rally, the tech-heavy Nasdaq is down more than 25% year-to-date.
According to Bank of America strategists Michael Hartnett, during the past week's brutal stock market sell-off, technology stocks witnessed their biggest retreats of the year, with investors pulling $1.1 billion out of the sector. However, the rising need for enterprise software in recording and managing customer experience, a spur in demand for e-commerce from various industries, and an increase in IT budgets of businesses could help the enterprise software market grow significantly in the near term. The global enterprise software market is projected to grow at a 6.46% CAGR to $84.94 billion by 2027.
