Shares of several big tech companies, including Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN), are all trading lower Tuesday morning amid a rise in Treasury yields, which has pressured growth stock valuations. Concerns over Fed tapering going into 2022 have continued to drive a market selloff in January.
The Federal Reserve is expected to start hiking interest rates and reducing the amount of bonds it buys each month. The Fed may also begin cutting the nearly $9 trillion in assets it's holding.
The 10-year US Treasury yield is hovering around a two-year high at 1.76% Tuesday morning, which has pressured valuations across the tech sector. When interest rates rise, the value of future cash flows is reduced for stocks, which in turn lower the value of the stock.
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