Investors have long observed a correlation between movements in Treasury yields and stock prices. The reasoning is that if Treasury yields rise, it becomes more expensive for businesses and consumers to borrow money, and this could lead to a slowdown in economic growth. As a result, investors may sell stocks and buy Treasuries, which are […]
What Does Higher Interest Rates Mean For Stocks
The Federal Reserve’s decision to raise interest rates for the first time in almost a decade is a sign that the economy is on the upswing. But what does it mean for stocks? The stock market has been on a tear in recent years, with the Dow Jones Industrial Average reaching new heights. But some […]
Read Time:
20 Min
0
If Fed Raises Rates What Happens To Stocks
In the summer of 2013, when then-Federal Reserve (Fed) Chairman Ben Bernanke indicated that the Fed would likely begin to taper its quantitative easing (QE) program, global equity markets tanked. Investors were concerned that the Fed’s withdrawal of liquidity would lead to less accommodative monetary policy and a slowdown in the global economy. Now, with […]
Read Time:
18 Min
0
Why Do Tech Stocks Fall When Interest Rates Rise
When interest rates rise, it becomes more expensive for companies and consumers to borrow money. This can lead to slower economic growth and a decrease in corporate profits. As a result, stock prices may fall. The technology sector is particularly sensitive to interest rates movements because many technology companies rely on borrowing to finance their […]
Read Time:
20 Min
0
0