Is the Fed Delaying Rate Cuts Due to Inflation? Here's My Take on Tech Stocks and the Economy

There's been a lot of talk lately about the Fed potentially cutting rates, but with the way things are going, I’m not so sure we’ll see that anytime soon. The economy’s holding up, but tech stocks, especially the high-valuation ones, are facing some serious pressure

One big factor is the rise in job openings. More job vacancies are pushing up labor costs, which could hit companies that rely on high-paid talent the hardest. This is a problem for tech stocks, especially in a higher-rate environment where margins are already getting squeezed

The other issue is wage inflation. When there’s a shortage of workers, businesses have to pay more to attract and keep talent, which can lead to rising prices across the board. And if that happens, inflation could start ticking up again.

If job vacancies keep climbing, the Fed might have no choice but to delay rate cuts or even keep tightening until inflation is under control. It’s clear that they’re focused on inflation, and strong demand in the labor market is a big concern for them.

So, I m curious how are you all thinking about this? Are you still bullish on tech, or are you adjusting your strategy given the pressure from higher labor costs and the Fed’s stance?