Tech stocks have started 2023 on a tear – and the rally is unlikely to peter out anytime soon thanks to cooling inflation and a weakening job market, according to LPL Financial.
The broker-dealer's chief equity strategist said Wednesday that he's expecting the sector's early-2023 rally to carry on thanks to economic data that increases the likelihood of the Federal Reserve pausing its war against inflation. "Technology has come storming back in early 2023," Jeffrey Buchbinder said in a research note seen by Insider, adding that LPL has upgraded its outlook on tech stocks from negative to neutral.
"Our technical analysis work is pointing to further potential gains ahead, and macroeconomic conditions are becoming more favorable for growth stocks," he added.