Published on 23 Nov 2022 on Zacks via Yahoo Finance
4 Technology Mutual Funds to Invest in for the Future
The Federal Reserve has been on a relentless drive this year to raise interest rates and bring demand down. The market has seen a streak of 75 bps hikes announced by the central bank to rein in the four-decade-high inflation.
One of the hardest-hit sectors has been technology. The S&P 500 Select Sector SPDR for technology has fallen 26% year to date as people have been driven away from growth stocks.
The tech-focused Nasdaq has fallen 28.8% in the same period. Higher interest rates impact the future cash inflows for growth companies like large-cap tech, as they have less funding for innovations. Despite this, whenever we have seen a green spell in the market this year, more often than not, it has been driven by investors’ faith in the futuristic value of tech stocks.