2024 could shape up to be a rebound year for software growth rates, helping both the largest tech companies and startups alike.
Rewinding the clock a few weeks, after ceding critical gains, software stocks found themselves in a funk. Then, new inflation data landed this week and ebullience returned. Key cloud and SaaS indexes quickly added value, while the broader yet tech-heavy Nasdaq Composite opened at 13,745.96 on Monday. It closed at 14,094.38 Tuesday, and is adding to that tally today.
Investors were cheered because falling inflation makes it less likely that the American central bank will raise rates further. Even without rate cuts, an end to rate hikes implies that some structural pressure on the value of tech stocks is concluding. Throw in hopes for a rate cut, and growth-oriented assets like tech shares could become all the more attractive.