The bond market is sending a message that technology investors can no longer ignore. The U.S. 10-year Treasury yield touched 4.80% Tuesday, the highest since January 2025. But this isn't just a U.S. story. Britain's 10-year gilt yields 5.21%, Australia's 5.14%, both at multi-decade highs. Even Japan, where the government borrowed for almost nothing for a decade, now pays 3.00%.
The trigger came from central bankers. Last week, Fed Chair Kevin Warsh said inflation has not slowed meaningfully and that the central bank still has "work to do." Traders now put the odds of a September rate hike near 66%. In Britain, markets price roughly 32 basis points of Bank of England tightening by year-end. Eurozone inflation came in at 3.3% in August, cementing another interest-rate hike by the European Central Bank in September.
Technology stocks are already feeling the heat. On Tuesday, the Nasdaq Composite fell 0.7% and the S&P 500 lost 0.4%. The tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) traded down 1%.
Five Nasdaq 100 names fell more than 5% Tuesday morning:
- CrowdStrike Holdings Inc. (NASDAQ:CRWD) dropped 6.2% to $216.63.
- Astera Labs Inc. (NASDAQ:ALAB) fell 6.2% to $278.61.
- Lumentum Holdings Inc. (NASDAQ:LITE) lost 5.8% to $861.66.
- Axon Enterprise Inc. (NASDAQ:AXON) slid 5.7% to $534.06.
- Teradyne Inc. (NASDAQ:TER) declined 5.3% to $331.35.
