While the Russia-Ukraine war has created a significant opportunity for the cybersecurity industry, and investor interest in cybersecurity companies has increased with firms preparing for potential cyberattacks from Russia, the broader tech selloff has been marring the industry’s upside potential.
Recently, St. Louis Fed President James Bullard said that the U.S. Federal Reserve needs to raise its benchmark interest rate to 3.5%. Concerns over aggressive interest rate hikes are dampening investor sentiment about tech and cybersecurity stocks. This is evident in the iShares Cybersecurity and Tech ETF’s (IHAK) 3.5% decline over the past five days.
