⚜•𝗝𝗘𝗡𝗡𝗜𝗘 | 𝗕𝗟ΛƆ𝗞𝗣𝗜И𝗞•⚜ Channel & Group Link

If the open doesn't start, click here

⚜•𝗝𝗘𝗡𝗡𝗜𝗘 | 𝗕𝗟ΛƆ𝗞𝗣𝗜И𝗞•⚜ Telegram | DID YOU KNOW?

That hurt tech stocks. For the past few weeks, the 10-year yield has traded between 1.72% and 2%, as traders moved into the bond for safety when Russia headlines were ugly—and out of it when headlines improved. Now, the yield is touching its pandemic-era high. If the yield breaks above that level, that could signal that it’s on a sustainable path higher. Higher long-dated bond yields make future profits less valuable—and many tech companies are valued on the basis of profits forecast for many years in the future. Overall, extreme levels of fear in the market seems to have morphed into something more resembling concern. For example, the Cboe Volatility Index fell from its 2022 peak of 36, which it hit Monday, to around 30 on Friday, a sign of easing tensions. Meanwhile, while the price of WTI crude oil slipped from Sunday’s multiyear high $130 of barrel to $109 a pop. Markets have been expecting heavy restrictions on Russian oil, some of which the U.S. has already imposed, and that would reduce the global supply and bring about even more burdensome inflation. Crude oil prices edged higher after tumbling on Thursday, when U.S. West Texas intermediate slid back below $110 per barrel after topping as much as $130 a barrel in recent sessions. Still, gas prices at the pump rose to fresh highs. "Markets were cheering this economic recovery and return to strong economic growth, but the cheers will turn to tears if the inflation outbreak pushes businesses and consumers to the brink of recession," he added. For tech stocks, “the main thing is yields,” Essaye said.
⚜•𝗝𝗘𝗡𝗡𝗜𝗘 | 𝗕𝗟ΛƆ𝗞𝗣𝗜И𝗞•⚜ from IT

Back To Top