U.S. futures were sharply down this morning, before the opening in New York, after markets in Asia and Europe all lost ground today. The declines followed a down day in the U.S., in which the S&P 500 lost 0.37%.Â
Tech stocks led the losses as investors reset their expectations around how the U.S. Federal Reserve might increase the future cost of money. Until recently, most analysts expected the Fed to hold interest rates where they are at the 3.5% level. However, new Fed chairman Kevin Warsh struck a surprisingly hawkish tone in his first rate-setting statement—and traders now suspect rates will rise later this year, making money more expensive to obtain in the future.Â
Higher interest rates are bad for tech stocks because AI…
