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
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.