Although the benchmark stock indexes rallied following the Federal Reserve’s interest rate increase by half a percentage point on Wednesday, worries over the potential for further monetary policy tightening and intensifying supply chain disruptions to push the economy into recession weighed heavily on market sentiment yesterday. The major benchmark indexes saw their worst losing day this year. The Wall Street fear gauge CBOE Volatility index has increased more than 100% year-to-date.
Since technology has been one of the worst-hit sectors, many high-quality tech stocks have now entered oversold territory. However, a growing reliance on tech products and solutions and increasing corporate and government investments to encourage the development of next-generation or efficient products should keep driving the industry’s growth.
