Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) shares are trading lower by 3.87% to $2,110.35 Thursday afternoon in sympathy with the overall market.
Companies in the broader technology sector are experiencing marked weakness after the Federal Reserve Wednesday afternoon raised its target fed funds rate by 75 basis points to a new range of between 1.5% and 1.75%, its largest interest rate hike in 28 years.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the Fed said in a statement… Read More
Following the Fed decision, the 10-year US Treasury yield has spiked, which has continued to pressure valuations in 2022. The 10-year Treasury yield hovered around a 5-year high of 3.495% Thursday morning before dipping to around the 3.398% level.
When key interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lowers the value of the stock.
See Also: Federal Reserve Raises Interest Rates by 0.75%, Hikes Inflation Estimates
According to data from Benzinga Pro, Alphabet Class A has a 52-week high of $3,030.93 and a 52-week low of $2,037.69.
