Gotta love ZERO RISK in the SP500 = $$$

[hajimow]

Can someone explain to me what 10 year yield has to do with tech? I trade futures and invest long term, so do not follow tech day to day fluctuations.

It has to do with everything and not only the tech. Higher interest rates will make cost of borrowing higher to the companies and will eat away from their profit. All things said, the situation right now is that market is overbought and needs a reason to sell and take profit. Reason does not matter and may not be 100% related.

 

[S2007S]

What a difference a day makes.

If the yields didn't rise last night the rally continuation would have continued straight into today.....like I said if yields drop going into the open tomorrow the nasdaq will fly high most likely erasing half of its losses tonight.

 

[S2007S]

Tonight watch the ndx futures and the 10 year which I'm sure you already do. A drop even to 1.60- 1.65 will cause a nice little rally...



U.S. 10 Year TreasuryUS10Y:U.S.
RT Quote | Exchange
Yield | 4:57 PM EDT
1.71%+0.069

 

[noddyboy]

It has to do with everything and not only the tech. Higher interest rates will make cost of borrowing higher to the companies and will eat away from their profit. All things said, the situation right now is that market is overbought and needs a reason to sell and take profit. Reason does not matter and may not be 100% related.

Yeah except in 2008, the same thing happened and tech did well...financials didn't. So people make up some story when they see two things moving together.

 

[SunTrader]

Can someone explain to me what 10 year yield has to do with tech? I trade futures and invest long term, so do not follow tech day to day fluctuations.

Tech stocks are growth stocks and as such are forrrrrrrrrrrward looking.

If rates go up in the future that means a dollar earned in the future has to be greater than a dollar earned today after factoring in those higher rates on financing operations as well as other costs affected by inflation. So not only the higher rates have to be overcome but the depreciation caused by inflation of earnings themselves.

And since they trade at a high multiple already, if investors/traders today believe rates will go higher in the future, they either decide a still higher multiple is ok or .... they sell today and see how things pan out in the future.

 

[RedDuke]

It has to do with everything and not only the tech. Higher interest rates will make cost of borrowing higher to the companies and will eat away from their profit. All things said, the situation right now is that market is overbought and needs a reason to sell and take profit. Reason does not matter and may not be 100% related.

this I understand, if it is basic. But why yield specifically matter for tech and not other sectors? This is what I do not get.

 

[hajimow]

this I understand, if it is basic. But why yield specifically matter for tech and not other sectors? This is what I do not get.

My response would be because tech stocks were bloated more than other sectors. Airlines, energy, bank stocks did not have enough meat to get butchered.

 

[RedDuke]

My response would be because tech stocks were bloated more than other sectors. Airlines, energy, bank stocks did not have enough meat to get butchered.

makes sense. Thanks

 

[KCalhoun]

Ive never seen such wide divergence between the 4 markets.... Nasdaq 3x Dow percent change etc, usually the nas dow sp russ are closer

 

[Overnight]

Where are all the zero risk takers in this thread? Did they scurry away like little rats on a sinking ship because they know it's BS? Yep! Cocksuckers with no balls to put their money where their mouth is.

FREE MONEY! HOP ON BOARD YOU LIMP-ASS POS! No? Poor wussy lalas, all sim and no bite.