The U.S. inflation hit a new 40-year high of 8.6% in May 2022, making the Fed increase interest rates by 0.75% yesterday after two hikes earlier this year. Investors’ concerns over the economy slipping into a recession have led to massive tech sell-offs lately.
Though Fed Chairman Powell assured that the central bank would consider hiking interest rates less aggressively in its next meeting, the interest-rate-sensitive tech industry is expected to remain under pressure. The tech-heavy Nasdaq Composite has declined 7.6% over the past week. However, given the surging demand for tech products and solutions and consistent breakthroughs, the industry should rebound soon.
