Momentum massacre: TSLA, NIO, ZM, & TDOC all dump on rising interest rates Why do high interest rates hit fast-growing, low-profit firms hardest? Read on to understand the technical and sentiment-driven explanations Share: For equity traders accustomed to cutting-edge technology stocks always outperforming the broader indices, the last couple weeks have been an eye-opening reminder of the concept of “market rotation.” Essentially, market rotation refers to the shift between different types of stocks leading in the market; to state a point that should be obvious, but that many have forgotten over the last decade, a strong business or industry doesn’t always lead to strong stock performance. In many cases, the shares of strong businesses in strong industries get so expensive that they’re essentially “priced for perfection” and any negative or even neutral developments can lead to a dramatic selloff.