Most people believe that when interest rates rise, the stock market falls. But why does this happen? The belief that stocks and interest rates are inversely related is one of the oldest investing maxims around. And for good reason—it seems to hold true most of the time. But there are exceptions to this rule. For […]
Why Do Higher Interest Rates Hurt Tech Stocks
In recent months, the tech-heavy Nasdaq Composite Index has slumped as interest rates have risen. One key reason: higher rates make it more expensive for companies to borrow money, and big tech firms tend to do a lot of borrowing. Rising rates also make it more expensive for people and institutions to buy stocks and […]
Read Time:
17 Min
0
0