MarketWatch
Rising interest rates pose a major threat to stock prices and other assets
Friday, September 4, 2026
The Federal Reserve has maintained higher interest rates since 2022 to combat inflation, which affects borrowing costs for businesses and consumers. Higher rates generally reduce the present value of future corporate earnings, a factor that influences stock valuations. Bond prices move inversely to interest rates, meaning rising rates decrease existing bond values. The relationship between interest rate movements and asset prices remains a subject of ongoing market analysis.
