Make earnings with no risk
Automated AI-driven system makes the trades, you earn the money
Join now

Rise in Technology Shares as Treasury Yields Plunge


Shares of technology companies experienced a notable increase as a decline in Treasury yields attracted more investors to the sector.

Tech Sector’s Valuation and “Risk-Free” Rate

According to strategists, the valuation of tech companies is influenced by changes in the “risk-free” rate of return on the Treasury markets due to their “long duration” growth potential. As a result of subdued inflation data, Treasury yields witnessed a significant drop on Tuesday. Consequently, companies with high growth expectations in the distant future, such as Artificial Intelligence chipmaker Nvidia, reached new all-time highs. Nvidia’s shares broke the $500 mark for the first time.

SPDR Select Sector Technology ETF

The SPDR Select Sector Technology exchange-traded fund, which monitors the tech industry group of the S&P 500, witnessed a 2% surge, reaching a new closing high of $182.04. The fund has recorded a 48% increase year-to-date.

Khosla Ventures Raising $3 Billion

Khosla Ventures, known for its successful investment in ChatGPT owner OpenAI, is currently nearing the completion of raising $3 billion for its latest venture funds. This achievement opposes the overall slowdown observed in Silicon Valley investment activity.

Foxconn Technology’s Contingency Plans

Foxconn Technology, a major supplier for Apple, has formulated contingency plans to address any potential repercussions it may face in China due to its founder’s bid for the Taiwan presidency.

Information sourced from Rob Curran at Dow Jones.

U.S. Crude Oil and Gasoline Inventories Expected to Rise

Previous article

Moody’s Upgrades Molson Coors Beverage Co.’s Senior Unsecured Rating

Next article

You may also like


Leave a reply

Your email address will not be published.

More in News