Shares of large-cap tech companies, including Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), are all trading lower amid a rise in US Treasury yields as investors continue to weigh the Federal Reserve's rate hike outlook. A more aggressive rate hike approach to curb inflation could weigh on stocks.
The 10-year U.S. Treasury yield is hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.660% Wednesday morning before dipping to around the 2.600% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
- Amazon is trading lower by 3.02% at $3,182.15
- Apple is trading lower by 2.01% at $171.50
- MIcrosoft is trading lower by 3.98% at $298.50
