Soaring inflation and fears of the economy tipping into a recession have triggered a brutal tech sell-off this year, as evident by the tech-heavy NASDAQ Composite sinking over 31% in 2022. The inflation hit a new 40-year high in May 2022, compelling the Federal Reserve to raise its benchmark interest rate by 0.75 percentage points, marking its most aggressive hike since 1994, which could inject more volatility into the market.
On the other hand, the tech industry has been thriving over the past two years, and the momentum is expected to remain strong as organizations build the next iteration of the hybrid workforce, strengthen supply chains, take cloud and everything-as-a-service to the next level, and increasingly adopt advanced technologies like the IoT, AI, and Meta. The tech budgets in the United States are expected to expand by 6.7% in 2022.
