Shares of companies in the broader technology sector, including Microsoft Corporation (NASDAQ:MSFT), are trading lower amid a rise in US Treasury yields. The weakness is also in sympathy with overall market in anticipation of expected Fed rate hikes this year as the Fed seeks to curb inflation.
A more aggressive rate hike approach to curb inflation could weigh on growth stocks. The 10-year U.S. Treasury yield is again hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.784% Monday morning before dipping to around the 2.700% 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.
Microsoft is trading lower by 3.30% at $287.29. Microsoft has a 52-week high of $349.67 and a 52-week low of $238.07.
