The stock market has been under pressure as the Fed’s aggressive monetary tightening has increased the odds of the economy tipping into a recession. Technology shares were hit particularly hard by the Fed’s dramatic pace of rate increases last year. The Federal Reserve seems to remain hawkish until inflation trends downward more intensely, and the robust labor market slows down.
Investors’ bearish sentiments around the tech stocks are evident as the Technology Select Sector SPDR ETF (XLK) slumped 28.8% over the past year.
