High Interest Rates Overwhelm Nasdaq

    On Monday, U.S. stocks ended mixed, with the Dow up slightly by 0.1%, and the Nasdaq showing unusually weak performance, falling 2.5% to a 3-week low.

    Long-term interest rates continued to climb, suppressing the market performance. The 10-year U.S. Treasury rate has risen to a high level in the past year, and the long-term and short-term interest rate spread has reached a new high. The interest rate spread curve has become steeper, pushing up the financial sector. Investors invest in growth technology companies because the company will generate a large amount of cash flow in the future, and rising interest rates will rise the discount rate of its future cash flow, causing market concerns.

  Selling pressure on the Nasdaq intensified near market close, with all indices except the Dow closing low. Investors are waiting for the Fed chair at Tuesday's Senate hearingr, whose views on interest rates and inflation will be crucial

    According to research statistics, 37% of the rise and fall of stocks comes from the factors of the industry, and 12% comes from the factors of the sector. Therefore, half of the driving force for the stock performance comes from the sector. In stock market investment, tracking the performance of industry sectors is an important part of investment success.