Investors’ concerns over aggressive interest rate increases by the Federal Reserve to tame multi-decade high inflation without triggering an economic slowdown have caused a massive tech sell-off lately, making many high-quality stocks now trade at attractive valuations. The tech-heavy Nasdaq Composite has posted seven consecutive losing weeks and declined 28.8% year-to-date.
However, the continuing digital transformation and increasing use of cloud computing, artificial intelligence (AI), and the internet of things (IoT) position the industry well to rebound soon. So, while many tech stocks have not yet hit bottom, some high-quality stocks look attractive at their current price levels.
