Cleveland Federal Reserve President Loretta Mester sees interest rates rising above 4% before the central bank considers easing them off. Since the Fed intends to keep raising rates to bring inflation down to its target level, the market is expected to remain volatile on recession fears.
A rising rate environment is expected to put significant pressure on the tech industry. The tech-heavy Nasdaq Composite is already down more than 24.5% year-to-date and could keep losing. Moreover, tech companies have been laying off staff to cut costs after delivering weak second-quarter results.
