The Federal Reserve will most likely raise interest rates by 75 basis points for the second straight month at its meeting later this month as last month’s Consumer Price Index (CPI) increased higher than expected to hit a new four-decade high. Therefore, the software industry and the broader tech sector could witness further pullback.
While increasing dependence on software with continued digitization and migration to cloud platforms should help the industry rebound soon, it could be difficult for small and fundamentally weak industry participants to survive the current challenges.
