Mainly because bond yield rise and stocks become less attractive.
The last rate hike many said "discounted " when the rate hike came investors cheong for 1 day only. Next 4 weeks lao sai.
You would think they learn the lesson already. Yet now we hear talk that rate hike Is "discounted" again. Keep repeating same mistakes.
In the past Fed hike rates because economy growing too fast. So rate hike is to slow things a little but company earnings still grow so stocks can move up.
Today's situation that rates are hiked to contain inflation only occurred in 1970s. Each rate hike sank the market. And brought down popular high flying STOCKS
WE JUST NEED TO LOOK AT FACTS AND LEARN FROM HISTORY.
Smart investors already got-out of US markets end of last year.
Most who hang on stubbornly using recent 10yrs as reference are making a big mistake of short sightedness. Situation has changed.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.