Tech stocks see worst day in seven years, amd and nvidia slump

Tech stocks posted their worst overall day since 2011, as investor concerns continue to rise amid rising interest rates. AMD and Nvidia have been particularly affected

AMD and Nvidia suffer sharp falls in the stock market

High-performing companies are often hit hardest when fears rise with rapidly rising interest rates. The S&P 500 ITI fell 4.8 percent in its entirety and much of that is attributable to the heavyweight stocks that fell today. Shares of Microsoft, Facebook and Apple slumped -5.4%, -4.13% and -4.63% respectively.

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All of these stocks have seen strong gains for the year, yet investors have been quick to sell and make a profit as they switch to more conservative stocks like Treasury bills and bonds. Both return at rates of almost a decade, so it makes sense that they have become more attractive investment vehicles.

AMD suffered an especially brutal day, with a drop of more than 8 percent. This marks a nearly 20 percent drop in the past three weeks for the Austin, TX-based chipmaker. Despite this, AMD is still 150 percent more valuable this year. Nvidia was also spared a seven percent drop, raising its market gain for the year to date to 33 percent.

Global interest rates are close to record lows, while the US USA it is driving interest rates to a higher level given recent economic strength, among other things. As the Federal Reserve's base rate increases, the value of existing low-interest bonds decreases, which means that when purchased, they will perform better given a lower base price.

All this means that the bonds, backed by the US government. In the USA, they have become more attractive, and therefore many investors are turning to them as a risk-free investment.

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