Shares of several companies in the broader industrial sector, including Plug Power Inc (NASDAQ:PLUG), FuelCell Energy Inc (NASDAQ:FCEL), ChargePoint Holdings Inc (NYSE:CHPT) and Virgin Galactic Holdings Inc (NYSE:SPCE), are all 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.
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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 industrial sector may also be trading lower in sympathy with the overall market, as fears surrounding the COVID-19 omicron variant continue. Shares of several companies in the broader industrial sector were also trading lower last week as investors reacted to minutes from the Fed's FOMC meeting. Minutes showed most Fed members viewed conditions for rate hikes as potentially being met relatively soon.
