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Stocks dropped on Friday afternoon, as gains made earlier in the day on hopes for diplomatic progress between Russia and Ukraine turned to losses. Technology stocks were hit particularly hard by higher bond yields. I want a secure messaging app, should I use Telegram? Investors took profits on Friday while they could ahead of the weekend, explained Tom Essaye, founder of Sevens Report Research. Saturday and Sunday could easily bring unfortunate news on the war frontโand traders would rather be able to sell any recent winnings at Fridayโs earlier prices than wait for a potentially lower price at Mondayโs open. Such instructions could actually endanger people โ citizens receive air strike warnings via smartphone alerts. That hurt tech stocks. For the past few weeks, the 10-year yield has traded between 1.72% and 2%, as traders moved into the bond for safety when Russia headlines were uglyโand out of it when headlines improved. Now, the yield is touching its pandemic-era high. If the yield breaks above that level, that could signal that itโs on a sustainable path higher. Higher long-dated bond yields make future profits less valuableโand many tech companies are valued on the basis of profits forecast for many years in the future.
๐บ๐ป๐ถ๐น๐ฐ๐ฌ๐บ ๐ฐ๐ต๐บ๐ป๐จ๐ฎ๐น๐จ๐ด ๐ ฒ from JP