On Monday, the stock market posted gains, with the tech-heavy Nasdaq Composite advancing 1.9% to 14,532.55. Investors shook off concerns about an impending recession and bought tech shares. Furthermore, the index has made a stellar recovery and is down only approximately 10% from its record.
Last month, the Federal Reserve finally raised interest rates for the first time since 2018. Wedbush analyst Dan Ives believes that this might pose an opportunity to invest in tech stocks and that large-cap tech will outperform its small-cap counterpart. The tech sector is oversold, which might be ideal for investors to start accumulating shares in high-quality areas. University of Florida finance professor Jay Ritter said, “I think some of the big tech companies are going to use the drop in valuations as a buying opportunity.”
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