Here's Why Amazon, Apple And Microsoft Shares Are Falling
Shares of large-cap tech companies, including $Amazon.com(AMZN)$, $Apple(AAPL)$ and $Microsoft(MSFT)$, 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 2.11% at $3,089.21
Apple is trading lower by 1.19% at $170.09
MIcrosoft is trading lower by 1.46% at $296.97
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