Shares of streaming and media stocks, including Walt Disney Co DIS and Netflix Inc NFLX are trading lower in sympathy with the overall market amid a rise in U.S. Treasury yields as investors continue to weigh the Federal Reserve's rate hike outlook.
The 10-year U.S. Treasury yield is hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.660% Wednesday morning before dipping to around the 2.600% 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.
Disney is trading lower by 3.15% at $131.32. Netflix is trading lower by 4.00% at $364.96
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