What Happened With DraftKings Stock Today?
Portfolio Pulse from Ryan Gustafson
DraftKings Inc. (NASDAQ:DKNG) shares traded lower due to rising Treasury yields and concerns of growing inflation and future rate hikes. The stock has been volatile recently, and the situation was exacerbated by President Joe Biden's announcement of an “unprecedented support package for Israel,” which caused 30-year yields to rise above 5% and yields on 10-year Treasuries to reach 4.9%, the highest level since 2007. In this period of high inflation and rising yields, discretionary stocks like DraftKings may be particularly impacted as consumers are likely to spend less on non-essential goods and services.
October 18, 2023 | 8:07 pm
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DraftKings shares traded lower due to rising Treasury yields and inflation concerns. The stock may continue to be impacted in the short term as consumers are likely to spend less on non-essential goods and services in this period of high inflation and rising yields.
The stock price of DraftKings has been negatively impacted by the rising Treasury yields and inflation concerns. The announcement of President Biden's support package for Israel has further increased these yields, causing a selloff in the broader market. As a discretionary stock, DraftKings is particularly vulnerable in this situation as consumers are likely to cut back on non-essential spending in times of economic uncertainty. This could lead to a decrease in the company's revenues and subsequently its stock price.
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