Tech stocks (and the stock market) are tanking thanks to rising interest rates

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Tech stocks cautioned amid a stock market slide as nervous investors worried that the 10-year bull run in stocks may be coming to an end.

The S&P 500 fell 3.3 percent while Nasdaq composite index (that is the marketplace where a lot of the biggest U.S. tech businesses are traded) dropped 4% of its value, falling 315.97 points. The net effect is that stocks are devastating and high-growth tech businesses are bearing the brunt of this beating.

A couple of points drove the selling, including increasing inflation and interest rates in addition to a transfer from the Fed to tighten policy. Further, Wall Street experts noted, as interest rates rise, many money movers are earning money transfers and taking money out of their stock market to invest in bonds that are protected with rates of return.

Stocks such as Amazon (down 6.15 percent) along with Tesla (down 2.25 percent) contributed from the downturn as stocks such as Walmart remained comparatively unscathed at -1.36 percent.

Even the NYSE Arms Index represented the chaos, increasing to 1.19 out of.5 today. The Arms Index goes over 1.0 if the market is down.

As our former correspondent and present Crunchbase editor, Alex Wilhelm, noted on Twitter, the large five missing a bunch of money now. And with a lot we imply $191 billion. This ’s not chump change.

-$191 billion in large 5 economy cap jesus pic.twitter.com/uXZFPmheLy

— alex (@alex) October 10, 2018


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