Rising Yields Pressure Tech Stocks
Rising Treasury yields have negatively impacted high-flying tech stocks.
Too little corroboration in the last 3 days to call a trend (5 articles). Watching for it to gain traction. It's spreading across SPX & RUT — a theme crossing asset classes.
"Wall Street's main indexes closed lower on Tuesday after the benchmark 10-year Treasury yield climbed to its highest level in more than a year on mounting inflation concerns."
"Higher yields often put pressure on shares of high-growth companies because their valuations depend heavily on future profit expectations."
"Stocks in the Russell 2000 fell sharply as higher borrowing costs hurt companies that need more cash."
"The rise in yields helped send stocks of utilities and real-estate owners to the sharpest losses in the S&P 500."
"The rise in 10-year yields and the prospect of a longer closure of the Strait of Hormuz spelled trouble for the big US tech stocks that were earlier seen as a safe haven since the war, said Melissa Brown, head of investment-decision research at Simcorp."
"The primary catalyst was the delayed January Non-Farm Payrolls (NFP) report... Higher yields act as a gravity force on stock valuations."
"Higher T-note yields were also negative for stocks after better-than-expected US economic news on ADP employment and ISM services activity pushed the 10-year T-note yield to a 4-week high of 4.159% on Wednesday."
"A recent run-up in Treasury yields has weighed on stocks."
"A recent run-up in Treasury yields has weighed on stocks."
"A recent run-up in Treasury yields has weighed on stocks."