While rising interest rates could mar the technology industry's growth, increasing demand for advanced technologies amid the continuing digital transformation should sustain investors’ positive sentiment about the industry. So, we think it could be wise to bet on tech stocks SS&C Technologies (SSNC), Avnet (NASDAQ:AVT), and Himax Technologies (NASDAQ:HIMX). These names are expected to see a year-end rally. Read on.The Federal Reserve recently hinted at hiking interest rates in 2022. This caused a mixed reaction among investors, and the tech-heavy Nasdaq and the S&P 500 declined. However, Art Hogan, chief market strategist at National Securities in New York, stated, “There's a real good chance that a lot of the things that have caused turbulence in both November and much of December are now in the rear-view mirror, and markets might now be able to glide higher.” This outlook indicates an eventual recovery by the teach-heavy indices.
In addition, experts expect the tech market to withstand initial losses caused by a high-interest-rate environment. This may be due to the continuing hybrid work culture amid concerns surrounding the COVID-10 omicron variant. Continuing digital transformation should also support the industry’s growth. Investor interest in the industry is evidenced by the Technology Select Sector SPDR Fund’s (XLK) 7% gains over the past three months versus SPDR S&P 500 Trust ETF’s (SPY) 4.3% returns.
Therefore, we think it could be wise to scoop up shares of quality tech stocks SS&C Technologies Holdings, Inc. (SSNC), Avnet, Inc. (AVT), and Himax Technologies, Inc. (HIMX), which are expected to rally in the near term. They are A (Strong Buy) or B (Buy) rated in our POWR Ratings system.