The tech industry faced several macroeconomic challenges since last year due to high inflation and the Fed’s aggressive interest rate hikes. The Central Bank held rates steady for the first time since January 2022. However, it is expected to resume rate hikes later this month because of strong macroeconomic data.
Although rising rates are not beneficial for high-growth tech stocks, the Fed is expected to start cutting interest rates next year, which could be positive news for tech names. Moreover, the software industry will likely benefit from rising digitization and cloud computing investments.
