Shares of several companies in the broader technology space, including Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), are trading higher as stocks rebound following Monday weakness after softer-than-expected US inflation data. A drop in yields has also helped lift the sector, though investors will await Wednesday’s Fed decision.
Apple and Microsoft shares may also be trading higher amid overall market strength following a lighter-than-expected U.S. PPI report. USA PPI month-over-month for Feb was 0.800% vs the 0.900% consensus estimate. The prior reading was 1.000%.
The 10-year US Treasury yield is otherwise again hovering around a two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.169% Tuesday morning before dipping to around the 2.100% 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.
Apple is trading higher by 2.3% at $154.06.
Microsoft is trading higher by 3.0% at $284.61.
