Despite the Fed raising interest rates twice so far this year, the U.S. inflation reached a new 40-year high of 8.6% in May 2022, raising investors’ concerns over the Fed’s forthcoming rate hikes becoming more aggressive. This increases the odds of the economy slipping into a recession. Following the release of the inflation data, major stocks tanked last Friday, with the tech-heavy Nasdaq Composite falling by 3.5%. The interest-rate-sensitive tech industry is expected to witness immense volatility in the coming days.
On the bright side, consumers’ growing reliance on tech products and solutions, impressive breakthroughs, and rising corporate and government investments in this space should keep driving the industry’s growth. Though many tech stocks have not yet hit bottom, some high-quality stocks look attractive at their current price levels.
