Amid tightening monetary policies of the Fed, tech stocks have witnessed significant downtrends. The tech-heavy and interest rate-sensitive NASDAQ Composite has lost 24.1% year-to-date. Moreover, St. Louis Fed President Jim Bullard is leaning toward another 75 bps hike in September, which might lead to further turmoil in the tech industry.
However, demand for tech goods and services is overwhelming amid rapid digitalization. Also, lucrative federal investments in the tech sector are expected to boost productivity. Recently, President Joe Biden signed the CHIPS and Science Act, worth $280 billion, to bolster American competitiveness in science and technology.
