2022 has been a challenging year for tech stocks due to various macroeconomic concerns. The Fed’s aggressive rate hikes have made the high-growth tech stocks look unattractive to investors, leading to the tech-heavy Nasdaq Composite shedding 28.6% year-to-date.
However, inflation is now showing signs of cooling down, with November’s CPI rising 0.1% from the previous month and 7.1% from a year ago, below analyst estimates. The easing of inflation has prompted the Fed to stick to the word of slowing down the pace of rate hikes, as it announced a 50-basis-point rate increase yesterday.
