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If You Think Tech Has Bottomed, Consider These Stocks

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If You Think Tech Has Bottomed, Consider These Stocks


Technology stocks have hit the skids this year amid soaring interest rates, with the tech-heavy Nasdaq Composite index falling 22% year to date.

Rising rates hurt tech stocks by making their future earnings less attractive compared to the climbing interest rates on Treasury bonds.

But have we hit bottom on tech stocks? The likely answer is no, as the Fed has made clear it will continue to raise rates. But it’s not 100% certain, and the Nasdaq Composite has soared 6% just since Sept. 6.

For those of you who do want to start dabbling in tech stocks, here are three mega-caps you might consider. Morningstar assigns all of them a wide moat. A company with a moat can fend off competition and earn high returns on capital for many years to come, the research firm says.





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