Given the Federal Reserve’s determination to continue raising interest rates until inflation falls below 2%, the danger of a recession has greatly increased. Moreover, the tech industry is expected to suffer amid persistent monetary tightening. Fed Chair Jerome Powell stated that the economy has yet to feel the cumulative effect of interest rate hikes.
However, with the Fed beginning to moderate the pace of rate hikes and given the industry’s prospects, software stocks may once again become appealing investment choices for investors. Gartner predicts that enterprise software spending will increase by 8.6% in 2023.
