Why Palantir Technologies, AMD And Nvidia Shares Are Falling Today

Shares of several companies in the broader tech sector, including Palantir Technologies Inc PLTR, Advanced Micro Devices, Inc. AMD and NVIDIA Corporation NVDA, are all trading lower on a continued market sell-off.

Growth stocks, including software and tech names, continue to sell off in anticipation of Fed policy tightening in 2022. The technology industry has also been pressured by a recent rise in Treasury yields, together with Fed tapering concerns. The 10-year US Treasury yield is hovering around a two-year high at 1.785% Monday morning, which has pressured valuations. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.