The tech industry was boosted by the near-zero interest rates and robust consumer demand during the pandemic’s height. But, the recent inflationary situation and the Fed’s aggressive stance on it have led to hiring freezes and layoffs as companies anticipate a recession.
Private equity analyst Orlando Bravo believes that there is ‘more pain to come’ for the tech sector, as several fundamentally sound tech firms see their valuations slashed, and the higher rates make their future earnings prospects less attractive.
