Shares of several companies in the broader retail and consumer discretionary sectors, including GameStop Corp. (NYSE:GME), AMC Entertainment Holdings Inc (NYSE:AMC), Genius Brands International Inc (NASDAQ:GNUS), Tilray Inc (NASDAQ:TLRY) and Bed Bath & Beyond Inc. (NASDAQ:BBBY), are all trading lower as a rise in yields and worse-than-expected fourth-quarter earnings from Goldman Sachs weigh on the market.
Stocks such as AMC and GameStop surged in early 2021 amid short squeeze momentum and have continued to see retail-driven volatility.
The 10-year US Treasury yield reached a two-year high Tuesday, which has pressured valuations. The 10-year Treasury yield hit an intraday high of 1.85% Tuesday morning before dipping to around the 1.83% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
