January 11, 2022: -On Friday, Stocks decreased to end a rough first trading week of the year, as rising interest rates battered tech shares.

The Nasdaq Composite dropped one more 0.9% on Friday to close at 14,935.90. Since September, the S&P 500 fell 0.4% to 4,677.03 for its first four-day losing streak. The Dow Jones Industrial Average is losing 4.81 points, or about 0.01%, to close at 36,231.66.

The tech-heavy Nasdaq posted its worst week since February 2021, down about 4.5% in the first five trading days of 2022. The S&P 500 was not thereby 1.8%, while the Dow lost 0.29% as investors rotated into some value stocks between the increase in rates.

“The stock market is undergoing somewhat of a transition right now, after a very strong 2021,” said Jay Pestrichelli, co-founder of ZEGA Financial. “We are seeing volatility in individual stocks compared to the indexes, and we see a change in leadership in the market, as investors reconsider the high-flying tech stocks of 2021 as interest rates increase.”

The release of the Federal Reserve’s December meeting minutes on Wednesday was the primary catalyst for the rate move. The meeting notes showed the central bank is ready to dial back its financial help more rapidly than some had anticipated, which includes taking steps to shrink its balance sheet while raising rates. On Friday, the 10-year Treasury yield topped 1.8%, continuing its 2022 run from a 2021 year-end level of just 1.51%.

On Friday, Tech stocks lost ground further as yields jumped. With rates surging rapidly, investors are dumping riskier stocks trading on high valuations based on profit growth estimates far off in the future.

Microchip Technology was one of the biggest decliners in the Nasdaq, down 3.9%. Other semiconductor stocks decreased, too, with Nvidia and AMD down more than 3%. Netflix decreases 2.2%. Twilio lost 3.5%.