Shares of several companies in the broader tech sector, including Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and Paypal Holdings Inc (NASDAQ:PYPL), are all trading lower on a continued market sell-off.
Growth stocks, including software and fintech names, continue to sell off in anticipation of Fed policy tightening in 2022. The technology industry has also been pressured by a recent rise in Treasury yields, together with Fed tapering concerns. The 10-year US Treasury yield is hovering around a two-year high at 1.785% Monday morning, which has pressured valuations. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
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