> proper explanation (which I didn't find skimming the article) needs to cover why tech is more influenced by that than say travel & leisure sectors. It's real

> proper explanation (which I didn't find skimming the article) needs to cover why tech is more influenced by that than say travel & leisure sectors. It's really about the difference between the Risk Free Rate (RFR) and return. Increasing interest rates increases the RFR. A few years ago the RFR was ~0% and even went negative in some places, and now it's ~5%. For an investor to invest in a company the risk premium now has ~5% added. This means even companies like Google, Apple, Meta, etc... must cut costs in order to maintain their current stock price. Since most costs are labor, that's what gets cut. It impacts startups the same way. Sitting on cash is earning 5% now, so the potential must be that much better to get someone to invest. The reason tech is more impacted is that the multiples are higher. You can think of a multiple like leverage. Every dollar invested in tech might move 5x-10x more than every dollar in travel. It's great when things are going up, but not great during a correction.