Spiking bond yields driving sharp losses in tech stocks
A spike in interest rates since the start of the year has accelerated a rotation out of high-growth technology stocks and into value stocks poised to benefit from a reopening of the economy. The Nasdaq has fallen more than 10% over the past month as the Dow has soared to record highs, with a spike in the 10-year US Treasury yield acting as the main catalyst. It recently surged to a cycle high of more than 1.60% after starting the year below 1%. But according to Jim Paulsen, the Leuthold Group's chief investment strategist, rising interest rates do not represent a long-term threat to the stock market. Paulsen expects the 10-year yield to cross 2% by the end of the year.
A spike in interest rates and its impact on the stock market depends on the economic backdrop, according to Paulsen. Rising interest rates amid a strengthening economy "may prove no challenge at all for stocks," Paulsen said.
Unlimited members in Telegram group now
Telegram has made it easier for its users to communicate, as it has introduced a feature that allows more than 200,000 users in a group chat. However, if the users in a group chat move past 200,000, it changes into "Broadcast Group", but the feature comes with a restriction. Groups with close to 200k members can be converted to a Broadcast Group that allows unlimited members. Only admins can post in Broadcast Groups, but everyone can read along and participate in group Voice Chats," Telegram added.
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