Last year was challenging for tech stocks due to various macroeconomic headwinds, including multi-decade high inflation, the Fed’s aggressive rate hikes, and geopolitical instability owing to Russia’s invasion of Ukraine. The tech-heavy Nasdaq Composite lost more than 25% over the past year.
However, with inflation showing signs of cooling recently, the Fed is expected to slow down the rate hikes this year, potentially turning high-growth software stocks into attractive investment picks once again.
