Since the beginning of this year, the technology industry has remained under pressure on worries about the Fed’s hawkish stance, surging inflation, and slowing economic growth. The tech-heavy NASDAQ Composite has plunged into bear market territory, declining 12.8% year-to-date and 10.3% over the past three months.
Given the recent macro headwinds, fundamentally weak SaaS stocks are underperforming. Because the Fed raised interest rates this week and intends to hike rates several times this year, overvalued tech stocks are expected to retreat further.
