Shares of social media, streaming and gaming companies, including Netflix Inc (NASDAQ:NFLX), Roblox Corp (NYSE:RBLX), Roku Inc (NASDAQ:ROKU) and Snap Inc (NYSE:SNAP), are all trading lower amid overall market weakness as expectations of a Fed rate hike continue to drive a market selloff.
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 1.78% Tuesday afternoon, 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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