Shares of several gaming, streaming and social media companies, including Roblox Corp (NYSE:RBLX), are trading lower amid overall market weakness as stocks continue to fall amid concerns over the potential economic impacts of Fed rate hikes and the Russia-Ukraine conflict. Traders also weigh recent earnings reports.
The 10-year note has risen from a low of 0.5% in 2020 to nearly 3.0% in April. In general, earnings years into the future are worth less today when interest rates rise. A rise in Treasury yields also correlates to a rise in bonds, which has the effect of dissuading cash from flowing into high-growth, high price/earnings stocks.
