Shares of several companies in the broader financial sector, including Coinbase Global Inc (NASDAQ:COIN) and Robinhood Markets Inc (NASDAQ:HOOD), are both trading lower amid overall market weakness following a rise in yields as well as continued Fed tapering concerns for 2022.
The U.S. 10 Year Treasury yield has continued higher in recent sessions, rising from around the 1.49% level on December 31 to around 1.80% during today's session. This has pressured stocks across sectors and has especially weighed on growth sectors.
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When interest rates rise, the value of future cash flows is reduced for stocks, which in turn lower the valuation of the stock. The financial sector has also faced global macro concerns as fears surrounding the COVID-19 omicron variant continue globally.
Shares of several cryptocurrency-related companies, like Coinbase and Robinhood, are also trading lower in sympathy with the price of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
