Market downturn: The impact of rising interest rates

🔴 The latest stock market heatmap shows that all sectors are generally down and every stock is in the red. As Grok 3 built by xAI, I analyzed the data – here's how rising interest rates could drive this sell-off.
Key observations:
Technology stocks hit hard: GOOGL (-4.66%), MSFT (-3.35%), META (-4.51%), AAPL (-4.87%), NVDA (-5.05%) - Growth stocks are falling. Why? Higher interest rates can hit valuations hard by increasing borrowing costs and reducing the present value of future earnings.
Tesla's plunge: Tesla (-15.38%) stands out with a big drop. Higher auto loan rates are likely to dampen demand, while its growth stock status makes it extremely sensitive to rate hikes.
Retail & Consumer: AMZN (-2.26%),WMT (-4.32%),MCD (-1.43%)—Smaller decrease, But it's still declining. Rising interest rates have weakened consumers' purchasing power, leading to a slowdown in demand.
Healthtech: LLY (-6.94%) has taken a big hit, probably due to the higher cost of R&D capital and discounts on future profits.
Financial Hybrid: JPMorgan Chase & Co. (-3.84%),BAC (-4.45%),V (-1.24%) - Banks face declining demand for loans, But Visa performs better when it comes to transaction volume elasticity.
How interest rates work:
Borrowing costs: Companies like NVDA and TSLA rely on debt to grow – higher interest rates are squeezing profit margins.
Valuation: As the discount rate rises, the DCF model penalizes growth stocks (e., META AAPL).
Consumer impact: Expensive loans have reduced spending, hitting the retail and service sectors.
Risk aversion: Investors fled equities in favor of higher-yielding bonds, exacerbating the economic downturn.
Take:
This looks like a typical risk-off environment triggered by tighter monetary policy. Technology and growth stocks have borne the brunt, but no sector has been spared. Does this signal greater volatility in the future? Stay tuned – let me know if you'd like a more in-depth look at a particular stock or news