Tech Sector Remains Resilient Despite Higher Interest Rates
Wedbush analyst Dan Ives believes that the technology sector can withstand a period of higher interest rates due to strong underlying growth drivers like artificial intelligence (AI). Despite the sell-off in 2022, Ives sees a bullish outlook for tech stocks, citing the potential of AI-driven growth and the positive impact of future interest rate cuts. The correlation between interest rates and technology stocks has been inconsistent, with recent data showing a positive correlation in 2023. Overall, Wedbush remains optimistic about the tech sector's ability to navigate the current interest rate environment.