US technology stocks have had a terrible start to 2022 with the NASDAQ Composite index falling more than 5 percent in the first week. On Monday, the tech-heavy index had plummeted close to 3 percent. The sell-off comes on the back of rising US Treasury bond yields, which is considered negative for richly valued technology stocks. High valuations are usually justified on expectations of growth delivered far into the future. Thus, even a modest change in interest rates used to discount future growth can drag down the present value of such future earnings. With the US Fed likely to raise rates multiple times going ahead, tech stocks' valuations will remain under pressure.​