Inflation skyrocketed last month, with the Consumer Price Index (CPI) rising 7.9%, marking its biggest year-over-year jump since 1982. As oil prices keep rising and supply-side circumstances continue to deteriorate due to increased sanctions on Russia, inflation is set to climb further. Therefore, concerns over the interest rate increases this year to control inflation have been fueling selloffs in the tech sector. The Fed is expected to move forward with its first-rate hike next week. However, analysts don’t expect the interest rate increases to be as aggressive as expected earlier, considering other, geopolitical, factors.
Since growing dependence on technology makes the industry’s prospects bright, fundamentally sound tech stocks are expected to withstand the market’s turbulence. With rapid digitization, the demand for advanced tech products and applications is expected to soar.
