The Federal Reserve has hiked interest rates six times this year to combat record-high inflation. The consecutive rate hikes have led to a broad tech selloff, with the tech-heavy Nasdaq composite slumping 27.9% year-to-date. However, with inflation slowing in October, the Fed might reduce its rate hike aggression for the coming months, which might bode well for tech and software stocks.
On the other hand, amid rapid digitalization trends, demand for software goods and services is expected to remain robust. According to Statista, revenue in the software market will reach $297.10 billion in 2022. Enterprise Software, the market’s largest category, is expected to hit $118.50 billion for the same period.
