Shares of several companies in the broader technology sector, including Meta Platforms Inc (NASDAQ:FB), Snap Inc (NYSE:SNAP), Block Inc (NYSE:SQ) and Paypal Holdings Inc (NASDAQ:PYPL), are all trading lower amid a rise in bond yields, which has weighed on growth stock valuations.
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.
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This ongoing, sharp rise in US Treasury yields has pressured growth sectors. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
Shares of several companies in the broader technology sector may also be trading lower in sympathy with the overall market, as fears surrounding the COVID-19 omicron variant continue.
