13.4 C
February 26, 2024
Egypt Bulletin

Tech stocks feel the heat from soaring Treasury yields

On Wednesday, U.S. stock markets experienced significant shifts, as investors navigated through diverse earnings reports and evolving Treasury yields. Notable indices showed marked volatility, with the Dow Jones Industrial Average declining by approximately 0.4%, the S&P 500 recording a fall of nearly 1%, and the tech-centric Nasdaq Composite suffering over a 1.4% dip.

Tech stocks feel the heat from soaring Treasury yields

Tech giants reported varying fortunes in their latest quarterly presentations. Alphabet, the parent company of Google, saw its shares plummet by over 8%, despite revealing better-than-expected earnings and revenue. The company’s underperformance in its cloud segment became a focal point of concern for investors. Conversely, Microsoft’s stock ascended by 3% following an announcement that showcased the tech leader’s profitable ventures in artificial intelligence (AI), enriching its cloud revenue.

The broader technology realm grappled with the aftermath of these contrasting outcomes. Both Amazon and Meta, previously known as Facebook, registered a decline in their stocks, roughly around 3%. As major tech firms have been pivotal in driving stock gains throughout the year, such downturns hint at potential shifts in investor confidence.

The tech sector encountered further headwinds from a surge in Treasury yields. The 10-year yield leaped beyond 4.9% on Wednesday, while the 30-year yield breached the 5% mark. Historically, bond market dynamics have wielded significant influence on tech stock valuations, making the sector susceptible to such yield increments.

Elsewhere in the corporate sphere, aerospace behemoth Boeing unveiled a nuanced quarterly report. While its revenue metrics narrowly missed analysts’ expectations, the firm disclosed a greater-than-forecasted adjusted loss per share. Notably, Boeing trimmed its delivery estimates for the popular 737 Max jets for the current year, attributing the revision to supplier complications. Yet, CEO Dave Calhoun underscored the company’s unwavering commitment to recovery and to achieving long-term fiscal targets.

Another tech titan, Apple, was in the spotlight as it proclaimed price increments for a host of its subscription offerings. This revision, affecting celebrated platforms like Apple TV+, is in line with the company’s previous pricing maneuvers. Apple continues to stress its commitment to delivering premium content and pioneering features to its vast user base.

Related posts

OFID signs deal to co-finance road network in Bangladesh

ADNOC invests over $764 million in drilling-related services

Masdar wins bid to build $174 million solar project in Armenia

$750 million Emirates NBD bond listed on Nasdaq Dubai

Dubai real estate transactions cross AED4.1 billion in a week

Danish Government confirms official participation at Expo 2020 Dubai