The U.S. stock market has entered correction territory, with the Nasdaq Composite and S&P 500 declining 11.4% and 7.5% respectively, year-to-date. Last week. the market witnessed its worst week since March 2020 due to concerns over looming interest hikes and the overvaluation of equities. The tech and software sectors have witnessed a sharp decline. However, according to Nuveen, the outlook for software is bright because demand remains robust.
Remote lifestyles and continuing digitization are helping to buoy global software industry demand. Therefore, certain high-growth tech stocks are currently trading near record highs, reflecting bullish investor outlook. According to a recent market study by Technavio, the Independent Software Vendors Market is expected to grow at a 13.3% CAGR from 2021 - 2026.
