Shares of several companies in the broader tech sector are trading lower as Treasury yields rise following a greater-than-expected increase in U.S. January inflation data.
Portfolio Pulse from Benzinga Newsdesk
Shares of several tech companies are down due to rising Treasury yields, triggered by a higher-than-expected U.S. January inflation data increase.
February 13, 2024 | 8:32 pm
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NEGATIVE IMPACT
AAOI shares are trading lower due to rising Treasury yields following unexpected U.S. inflation data.
AAOI, being part of the tech sector, is directly impacted by the macroeconomic factors such as inflation rates and Treasury yields. The unexpected rise in inflation data has led to an increase in Treasury yields, which typically results in lower stock prices for tech companies due to the increased cost of borrowing and the shift of investor preference towards safer assets.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
INTC shares are trading lower as a result of rising Treasury yields, spurred by an unexpected increase in U.S. January inflation data.
INTC, as a major player in the tech sector, is negatively affected by the rise in Treasury yields, which is a reaction to the unexpected increase in U.S. inflation data. Higher inflation leads to higher Treasury yields, making borrowing more expensive and often causing investors to move away from stocks, particularly those in the tech sector, which are considered riskier.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50