Shopify Inc.'s stock took a significant hit during Tuesday's trading session, plummeting 7.06% as the e-commerce company was caught in the broader sell-off of the technology sector.

The decline in Shopify's share price was fueled by concerns over rising borrowing costs in the United States. According to the news report, the yield on the 10-year U.S. Treasury note climbed to its highest level since May, driven by stronger-than-expected U.S. economic data that raised fears of persistent inflation and potential delays in the Federal Reserve's interest rate cuts.

Higher long-term interest rates tend to negatively impact growth stocks like Shopify, as they reduce the present value of the company's expected future cash flows. The tech-heavy Toronto Stock Exchange index saw a sharp 3.1% drop, with Shopify contributing significantly to the sector's decline with a 6.3% drop in its share price.