New U.S. inflation data is augmenting tech stocks listed on American exchanges, helping shares of cloud companies reach prices they haven’t been close to for nearly a year.
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The new numbers on inflation indicate that the American central bank could soon halt its series of aggressive interest rate hikes, and if that causes interest rates to level off, it could spur investors to pivot their focus back towards tech shares. Given how far tech valuations have fallen in the past couple of years, any recovery feels welcome.
TechCrunch+ noted in late Q2 2023 that tech valuations were perking up, at least on the public markets. Today, following the new inflation data, a collection of cloud stocks tracked by VC firm Bessemer ticked 1.9% higher to reach gains of around 32% year-to-date.
Inflation down, tech up
The past year has been tumultuous for many …
