Why GameStop, Bed Bath & Beyond And Etsy Shares Are Falling Today

Shares of several companies in the broader retail sector, including GameStop Corp. GME, Bed Bath & Beyond Inc. BBBY and Etsy Inc ETSY, are all trading lower amid a rise in bond yields, which has weighed on growth stock valuations. 

The U.S. 10 Year Treasury yield has continued higher in recent sessions, rising from around the 1.49% level on December 31 to around 1.80% during today's session.

See Also: Why Nike Shares Are Trading Lower Today

This ongoing, sharp rise in US Treasury yields has pressured growth sectors. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

Shares of several companies in the broader retail sector may also be trading lower in sympathy with the overall market, as fears surrounding the COVID-19 omicron variant continue.

GameStop shares were otherwise trading higher last week following a Dow Jones report suggesting the company plans to launch a business unit dedicated to NFTs and cryptocurrency.