US stocks are climbing and second-quarter corporate earnings are coming in strong . Investors on Wall Street are optimistic. Across the country, in Silicon Valley, the situation isn’t quite as good. The tech titans like Apple, Amazon, Alphabet and Microsoft are doing just fine – but their younger startup siblings are struggling to stay afloat.
That means there are a lot of startups worth a lot of money on paper, but they’re worried that if they try to cash out they’ll come up short of that number. Why it’s happening: Blame the Fed, as per usual. Higher interest rates to fight inflation “is one of the clearest symbols of change in the market,” said the report. The current federal funds rate is at its highest level since July of 2007.
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