This past week, however, stocks just plunged. The Dow Jones industrial average, after gaining 109 points on Monday, lost 418.87 points over the next four sessions. Broader market indicators also fell, although their losses didn't approach those of the blue chips.
Stock prices tend to fall when interest rates go up.
Higher rates mean higher corporate borrowing costs, cutting into profits, and they can also prompt consumers to cut back their spending. But as rates climb, they might also draw investors away from the volatile price swings of stocks and toward the more stable, guaranteed returns that come with bonds. The higher their yield, the more favorable bonds appear. And analysts say 6 percent is a true, albeit largely psychological, benchmark. Investors love a round number.