The technology sector was the worst affected sector in the broader market sell-off earlier this month, as evidenced by the tech-heavy Nasdaq 100 index’s 11.3% decline year-to-date.
Worries about the Federal Reserve raising interest rates to combat inflation and overvaluations have caused tech stocks to underperform versus the broader market so far this year. Because the Fed is expected to hike benchmark interest rates at least three times this year, tech stocks are expected to remain under pressure in the near term.
