Why the technology sector is defying its critics
2023 has seen a surprising revival in the technology sector. This defied the grim predictions of some investors who saw rising interest rates marking an end to the decade-long dominance of technology stocks. The sector’s strength has partly been driven by the excitement around artificial intelligence and its potential for disruption. Artificial intelligence could be a major force over the next decade. Its influence is likely to be felt in more industries, and investors need to align themselves with the disruptors rather than the disrupted. Ultimately, new and as-yet-unseen opportunities will emerge as AI grows in power and capability. In the shorter-term, the resolution of the debt ceiling has allowed markets to breathe a sigh of relief. In the end, the impact for bond and equity markets was minimal. All eyes will now turn to the next move from the Federal Reserve and the timing of its next rate rise.