Meta and Microsoft Lead Tech Stocks Higher Amid Rising Bond Yields
Tech stocks rose last week despite surging Treasury yields and expectations of additional Federal Reserve rate hikes. The Nasdaq gained 2%, the S&P 500 climbed 1%, while the Dow posted a modest 0.3% gain. Strong economic data, including resilient manufacturing conditions and rising oil prices, fueled concerns about inflation and tighter monetary policy. Meta's stock surged nearly 13% after CEO Mark Zuckerberg announced plans to expand Muse, its AI agent, across hardware and apps with new partnerships and monetization strategies. Microsoft also gained credibility as analysts upgraded the stock following strong Azure growth of 43%. Both companies are seen as key drivers in tech’s recent performance. Higher bond yields remain a challenge for equities by making borrowing more expensive and bonds more attractive compared to stocks.
Tickers: $BBY $META $MSFT $WMT
Topics: Dow Jones Federal Reserve rate hikes inflation Nasdaq S&P 500 stock volatility Treasury yields