Shares of companies in the broader tech sector, including Netflix Inc (NASDAQ:NFLX), are trading lower amid overall market weakness. Concerns over future Fed rate hikes have weighed on growth sectors while economic slowdown concerns have pressured market sentiment.
Fed policy outlook, rising Treasury yields and quarterly earnings reports have dragged markets lower in April. Last Tuesday’s session saw a 3-year high of 2.940% for the 10-year note.
The 10-year note has risen from a low of 0.5% in 2020 to nearly 3.0% in April. In general, earnings years into the future are worth less today when interest rates rise. A rise in Treasury yields also correlates to a rise in bonds, which has the effect of dissuading cash from flowing into high-growth, high price/earnings stocks.
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According to data from Benzinga Pro, Netflix is trading lower by 3.98% at $201.56. Netflix has a 52-week high of $700.99 and a 52-week low of $199.21.
