Be careful! During the hawkish stance of the Federal Reserve, are growth stocks the most vulnerable?

On Thursday, the US stock market experienced a sharp decline, and global stock markets welcomed a "Black Thursday."

The S&P 500 Index and the Nasdaq Index fell to their lowest closing levels since June, while the 10-year US Treasury yield soared to its highest level since October 2007.

What drove the market

There are new signs indicating that the Federal Reserve is expected to maintain high interest rates next year, which has once again raised concerns among investors about a possible recession in the United States.

"The Fed believes in a smooth landing, but if you raise interest rates and keep them at a high level for a period of time, while oil prices work against you, how long can consumers hold on?" said Peter Cardillo, Chief Market Economist at Spartan Capital Securities.

"Today's decline is a continuation of yesterday's market decline," Cardillo said. "Bond yields reaching new highs since 2006-2007, a strong US dollar, all of these factors contribute to the fear."

Vulnerability of growth stocks

The revised "dot plot" released by the Federal Reserve on Wednesday reinforced the view that interest rates may remain at a higher level (above 5%) for a longer period of time.

This could put pressure on companies and landlords with trillions of dollars in debt coming due, and it could also put pressure on the stock market.

Eric Diton, President and Managing Director of Wealth Alliance, said that "in the coming weeks and months, rising interest rates may pose a problem for soaring growth stocks."

"The market is waking up to the fact that the Fed will not cut interest rates, and these growth stocks are very vulnerable."