(Bloomberg) -- Wall Street’s biggest technology companies are down more than $130 billion in market value in premarket trading on Tuesday as rising bond yields prompted investors to rotate out of pricey growth stocks.
Most Read from Bloomberg
How Los Angeles Became the City of Dingbats
The Country That Makes Breakfast for the World Is Plagued by Fire, Frost and Drought
Why the Gaza Strip May Be the City of the Future
HSBC Bets Big on China as Pressure Mounts in London
School Reopenings Falter as U.S. Kids Near 1 Million Covid Cases
All but one of the members in the $9 trillion-plus NYFANG+ index, which includes 10 highly liquid tech and internet stocks, were in red. Nvidia, Apple and Tesla all fell at least 1.5%.
Tech stocks are particularly sensitive to rising rate expectations because their value rests heavily on future earnings, which are discounted more deeply when rates rise. Bond yields from the U.S. to Germany spiked, as investors braced for the Federal Reserve to start tapering.
Most Read from Bloomberg Businessweek
A Tiny Piece of Plastic Is Helping Farmers Use Far Less Water
The Energy Future Needs Cleaner Batteries
Evergrande Debt Crisis Is Financial Stress Test No One Wanted
Microsoft and an Army of Tiny Telecoms Are Part of a Plan to Wire Rural America
In Amazon’s Flagship Fulfillment Center, the Machines Run the Show
©2021 Bloomberg L.P.
