Shares of several growth stocks, including Netflix Inc NFLX, are trading lower going into the close of Monday's session amid overall market weakness after recent economic data raised concerns over further Fed rate hikes, which could negatively impact consumer spending on non-essential items. Companies in the broader consumer discretionary sector are also lower following reduced guidance from VF Corp.
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, Netflix is trading lower by 2.86% to $311.26. NFLX has a 52-week high of $632.46 and a 52-week low of $162.71.
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