Peloton Stock Is Surging: What's Going On?

Peloton Interactive Inc PTON shares are trading higher Tuesday amid strength in growth stocks. The growth stock rally seems to be fueled by a drop in yields.

Treasury yields are falling amid economic growth concerns. The Federal Reserve is in the midst of what is expected to be its most aggressive tightening cycle in more than 40 years as the central bank attempts to tame runaway inflation. Investors continue to worry about rising inflation and the potential for higher rates to cause a recession. 

However, lower rates increase the present value of future cash flows, which can positively impact the valuations of growth stocks. The 10-Year Treasury yield was hovering around 2.82% at press time.

FOMC minutes from the latest Fed policy meeting are scheduled to be released on Wednesday.

See Also: What's Going On With Roblox Shares Popping Off Today?

PTON Price Action: Peloton has traded between $129.70 and $8.74 over a 52-week period.

The stock was up 12.6% at $10.28 at press time, according to data from Benzinga Pro.

Photo: courtesy of Peloton.

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