Recent developments in interest rate markets are a headwind for stock prices, but interest rates are just one component of the overall liquidity picture and factors impacting financial conditions.

Financial conditions refers to the cost and availability of credit, which is influenced by things like interest rates, the relative cost of borrowing (i.e. credit spreads), and financial market volatility.

Despite the challenges in rate markets discussed above, financial conditions are actually looser than when the Fed first started raising interest rates back in early 2022.