Tech Stocks Plummet Amid Treasury Selloff and Higher Oil Prices
The stock market saw significant losses in several tech companies, including ZoomInfo, Upstart, and monday.com, after a Treasury selloff led to higher oil prices and a benchmark 10-year yield of 5.218%. This increase in yields weighed heavily on technology and software stocks, making distant earnings less attractive compared to relatively safe government bonds.
As investors can earn more than 5% on government bonds, the value of growth stocks like monday.com (MNDY) decreased, leading to a 44.9% drop since the beginning of the year and a current price of $79.09 per share, which is 61.5% below its 52-week high of $205.24 from October 2025.
Financial analysts highlight that rising oil prices can push inflation higher, leading to further Federal Reserve rate hikes, which would increase borrowing costs for businesses and consumers. The upcoming jobs report may provide more clues about the Fed's next steps, but investors should be cautious of overreacting to news in the market.