US Rates at 19-Year High Hit Nvidia and Asian Markets

WHAT HAPPENED

The interest on the US 30-year Treasury bond rose to 5.33%, its highest level since 2007. Nvidia fell 2.9%, AMD 4.5%, Samsung 7.8%, and SK Hynix 9.8%.

WHY IT MATTERS

Expensive money first hits technology, data centers, and chip factories because they need large loans. It also raises the cost of mortgages, cars, and business loans. The Fed showed that three members preferred to raise rates due to fears of persistent inflation.

AND FOR YOUR PORTFOLIO

For a long-term investor, this explains why technology funds, stocks, and pensions that invest in the stock market may decline, even as companies continue to grow. In daily life, the effect may appear as more expensive loans and less hiring in sectors like construction and consumption.