After a rollercoaster ride, tech stocks rebounded toward the end of last week following reports of a possible compromise on the political impasse over the U.S. budget.
The political pall hanging over tech and other sectors came amid gloomy reports of a continued slump in the PC market.
With the U.S. government shutdown in its second week and the possibility of a national debt default looming, tech stocks took a beating earlier this week. The government itself is a big purchaser of technology. In addition, the halt of federal expenditures has “a ripple effect” through the entire economy, noted Andrew Bartels, chief economist at Forrester Research.
Among other issues, the government is expected to reach its borrowing limit next week. After that, if Congress does not vote to raise the debt ceiling, the government will have to default on at least some debts.