In the early days of the pandemic, technology stocks were the talk of the town. Companies that provided quick, innovative solutions to a changing world’s problems were handsomely rewarded by the stock market.
In 2022, that enthusiasm has dampened, with worries of a looming recession hitting tech companies especially hard.
On Sept. 13, the Nasdaq-100 index — a benchmark of tech stocks — fell by more than 5.5% after the Bureau of Labor Statistics published higher-than-expected inflation figures. That news stoked fears of sharp interest rate increases and thus lower profits for debt-heavy tech companies.
Yet, many investors remain interested in tech stocks — and for good reason. Technology will play a major role in the future, helping to resolve questions about sustainable energy, automation, health care and housing.
Here’s an overview of what tech stocks are, a list of the best-performing tech stocks and your options for buying them.
What is a technology stock?
This article was written by Sabrina Parys and originally published on www.nerdwallet.com