Stock Market Impact: How Rising Interest Rates Affect Corporate Profits
📉 Increased interest rates can negatively impact company profits by raising financing costs.
⚠️ Higher interest rates make fixed income investments more attractive, potentially diverting capital from stocks.
📈 Lower interest rates can boost stock prices as financing becomes cheaper and fixed income less appealing.
💡 Stock prices depend on many factors, not just interest rates, with capital-intensive businesses being more affected.
