Software stocks which fall under the broader tech sector, have been under pressure since last year due to the Fed’s aggressive interest rate hikes. The Fed announced its 10th interest rate hike of 25 basis points last week, and the Federal Open Market Committee had hinted it could pause rate hikes if inflation showed further signs of easing.
The latest CPI data for April indicated that inflation moderated as the consumer price index (CPI) increased 0.4% for the month, in line with estimates, and rose 4.9% annually, slightly lesser than the 5% estimate. This could be good news for tech stocks.
