The fear is that the Fed’s intention to keep interest rates higher for longer to curb inflation could knock the economy into recession and fuel a slide in high-valuation technology stocks. However, DataTrek Research believes recession fears may trump artificial intelligence (AI) euphoria, saying, “Tech stocks have had an orderly selloff despite higher rates because the market thinks their earnings will continue to hold up. However, the recent sharp ascent in interest rates could challenge that outcome.” There are fears that an economic slowdown has not yet been priced into mega-cap technology stocks.