Tech Stocks Rebounding: How The Worst Performers Of 2022 Are Faring In 2023

Investors looking for profits in tech stocks were met with difficulties last year as the market dealt blows to almost all sectors outside of energy and healthcare.

The Federal Reserve's seven rate increases, the geopolitical unrest fueled by the Russian invasion of Ukraine, and even China's zero-COVID ambitions which choked global supply lines, all had a part in the market volatility of 2022.

These elements played a part in the S&P 500 SPY having its worst performance since the 2008 financial crisis, with the technology sector among those suffering the most.

Apple Inc AAPL was the biggest loser of the year in tech, in terms of absolute market cap declines, losing $846 billion. Meanwhile, Meta Platforms Inc META, the company designing the "metaverse," lost nearly $500 billion in market cap.

But, the tech stocks investors sold off in 2022 look to rebound in 2023, with Apple already up 4.23% on the year, with Meta climbing over 6%.

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Here’s how the worst-performing companies of 2022 are doing so far in 2023.

A dovish pivot by the Fed is what investors seeking gains in those battered tech stocks are anticipating as the central bank decides between raising interest rates by 0.25 basis points and 0.50 basis points at its next meeting on Feb. 1.

Investors would likely rush into those tech names in response to a rate increase of 0.25 basis points, as they will see it as a sign that inflation is showing signs of retreat, and the dovish pivot that has been long anticipated has begun.

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