Shares of several software and technology companies, including Asana Inc ASAN, Cloudflare Inc NET and Palantir Technologies Inc PLTR are trading sharply lower going into the close of Monday's trading session amid a rise in yields, which has weighed on growth stock valuations.
The 10-year Treasury yield hit an intraday high of 3.61% Monday morning before dipping to around the 3.56% 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.
Major indices are also lower on continued weakness following last week's nonfarm payroll data. Better-than-expected data raised concerns over further Fed rate hikes.
What Happened With Last Week's Data?
The U.S. added 263,000 jobs last month, beating average economist estimates of 200,000 jobs.
New data from the Bureau of Labor Statistics showed the U.S. unemployment rate is at 3.7%, in-line with economist estimates. The labor participation remained unchanged at 62.1%, compared to the 63.4% pre-pandemic rate in February 2020...Read More
According to data from Benzinga Pro:
- ASAN is trading lower by 11.61% to $14.31
- NET is lower by 11.20% to $42.95
- PLTR is lower by 6.59% to $7.16
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