Hey Tech lovers, Are you tired of reading dry and formal tech articles? Want to stay updated on the latest tech stuffs but in a simple way? Look no further! Join our Telegram channel - TECH KNIGHT - where we share the latest tech news in a casual and easy-to-understand manner. Plus, we also have a lively COMMUNITY of tech enthusiasts like yourself where you can share your thoughts and ideas. Don't miss out,
Hey Tech lovers, Are you tired of reading dry and formal tech articles? Want to stay updated on the latest tech stuffs but in a simple way? Look no further! Join our Telegram channel - TECH KNIGHT - where we share the latest tech news in a casual and easy-to-understand manner. Plus, we also have a lively COMMUNITY of tech enthusiasts like yourself where you can share your thoughts and ideas. Don't miss out,
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.
