Here's Why Applied Materials And Lam Research Shares Are Falling

Shares of companies in the broader technology and semiconductor sectors, including Applied Materials, Inc. AMAT and Lam Research Corporation LRCX, are trading lower amid a rise in US Treasury yields and in sympathy with the overall market in anticipation of expected Fed rate hikes this year as the Fed seeks to curb inflation.

A more aggressive rate hike approach to curb inflation could weigh on growth stocks. The 10-year U.S. Treasury yield is again hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.784% Monday morning before dipping to around the 2.700% 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.

  • Applied Materials is trading lower by 2.33% at $117.16. Applied Materials has a 52-week high of $167.06 and a 52-week low of $114.39
  • Lam Research is trading lower by 2.90% at $477.36. Lam Research has a 52-week high of $731.85 and a 52-week low of $466.06
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