Advanced Micro Devices, Inc. (NASDAQ:AMD) shares traded lower by 6.67% to $63.36 this week amid overall market weakness and a rise in the 10-year treasury yield, which is hovering around a decade high of 4%. In general, when interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
The weakness in the overall market may also be weighing on the sector following jobless claims for September that came in below estimates, which has added to concerns of further Federal Reserve action to curb the tight labor market.
What Happened?
U.S. initial jobless claims unexpectedly fell last week to the lowest levels since April, signaling the labor market remains resilient despite continued rate hikes from the Federal Reserve.
Jobless claims decreased by 16,000 for the week ending Sept. 24 to 193,000 from a downwardly revised level of 209,000 in the prior week, according to data the Labor Department released on Thursday...Read More
See Also: Surprise! Jobless Claims Fall To Lowest Levels Since April: What You Need To Know Now
