Concerns over aggressive interest rate hikes to fight the multi-decade high inflation and the possibility of the economy entering a recession have led to a broad market correction in the first half of 2022. After the most aggressive hike since 1994, the Federal Reserve has signaled further interest rate increases this year to tame the surging inflation.
Therefore, the sky-high valuations of several growth stocks have declined significantly. Growth stocks look less attractive to investors in a rising interest rate environment.
