(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.
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.
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