Snowflake Inc (NYSE:SNOW) 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 3.305% at press time.
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Snowflake enables organizations to mobilize data using the company's data cloud.
SNOW Price Action: Snowflake has traded between $405 and $112.10 over a 52-week period.
The stock was down 8.13% at $112.47 at press time, according to data from Benzinga Pro.
Photo: courtesy of Snowflake.
