Because the recent recovery of benchmark stock indexes indicates that investors have digested the Fed’s highly hawkish stance, the tech industry could witness a solid rebound in the coming months. The NASDAQ composite gained 3.7% over the past week. Furthermore, U.S. weekly jobless claims recently hit their lowest level since 1969, thereby highlighting the potential strength of a full economic recovery.
In addition, because demand for technology remains strong with rapid digitization, the industry is well-positioned to rebound. Investors’ interest in tech stocks is evidenced by the Technology Select Sector SPDR Fund (XLK) 6.1% returns over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 5.7% returns.
