Technology stocks ticked up late this week which was refreshing as they have suffered since November when the Nasdaq crept to an all-time high. Rising bond yields fueled the devaluation in technology stocks because as the yield curve steepened this lowers the relative value of future cash flows which are the foundation of growth stocks. Additionally higher inflation also devalues those future earnings. However, the yield curve stagnating was enough to boost the Nasdaq by 3%. Additionally, most tech companies have surpassed expectations on earnings despite headline numbers from Meta.

Finsum: It might not take too many rate hikes to put inflation back in its place which means tech could be undervalued!