Splunk Inc. (NASDAQ:SPLK) shares are trading lower Monday alongside several companies in the broader technology sector amid overall weakness as stocks continue to sell off following worse-than-expected May CPI data.
Inflation accelerated again in May as the headline CPI rose 8.6%, up from 8.3% in April and above average economist estimates of 8.3%. Core inflation, excluding food and energy prices, was up 6% in April, which was also above economist estimates of 5.9%.
An increase in U.S. Treasury yields has also weighed on the tech sector. Higher rates decrease the present value of future cash flows, which can negatively impact the valuations of growth stocks. The 10-Year Treasury yield was hovering around 3.352% at press time.
Splunk Inc. provides solutions that use data from digital systems to help organizations identify opportunities for optimization to keep their systems secure.
SPLK Price Action: Splunk, Inc. has traded between $176.66 and $84.63 over a 52-week period.
The stock was trading about 8.9% lower at $89.74 per share on Monday at the time of publication.
