Rising rate expectations added pressure to high-valuation technology shares and spilled into crypto markets, underscoring broader market volatility and shifting risk appetite.
The Nasdaq Composite fell 2% as a selloff in technology stocks intensified amid fears of higher interest rates, signaling a possible shift in investor sentiment across risk assets. Elevated rate expectations added pressure to high-valuation growth shares by weighing on the present value of future earnings, while the broader move also affected crypto markets. The decline highlighted how sensitive technology stocks and other risk-oriented assets can be to changes in the interest-rate outlook, reinforcing concerns about market volatility as borrowing-cost expectations rise.