Why PayPal, Trade Desk And RingCentral Shares Are Rising Today

Shares of multiple tech and software companies, including Paypal Holdings Inc PYPL, RingCentral Inc RNG and Trade Desk Inc TTD are all trading higher rebounding following Monday's weakness and as investors weigh comments from Fed Chair Powell. The sector has been under pressure amid a recent rise in yields, which has weighed on growth stocks.

The U.S. 10 Year Treasury yield has risen sharply to start 2022, rising from around the 1.49% level on December 31 to around 1.76% during Tuesday's session. This has pressured stocks across sectors and has especially weighed on growth sectors.

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When interest rates rise, the value of future cash flows is reduced for stocks, which in turn lowers the valuation of the stock. The tech and software sector has continued to face global macro concerns in 2022 as fears surrounding the COVID-19 omicron variant continue globally.