Technology stocks have been hit especially hard, with the Nasdaq Composite Index falling. The bond market is also in disarray: interest rates are rising sharply and bond prices, moving in the opposite direction, are falling. But removing this support also inevitably cools markets, as investors move money around in search of assets that outperform when interest rates are high. It helped boost economic growth by keeping short-term interest rates close to zero and pumping trillions of dollars into the economy. One reason for this is that low interest rates have reduced the value of the expected future returns of growth-oriented companies.

Source: New York Times January 23, 2022 02:11 UTC