Tech Stocks Power Market to Record on All-Clear From Treasuries
- Nasdaq 100 tied for its longest winning streak in nine months
- Biggest drop in bond yields in a year helped fuel tech gains
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For months, the threat of inflation grounded the tech stocks that drove the post-pandemic rebound. And yet, when data this week showed the threat is real, the Faangs took off.
Investors in the tech megacaps can thank the bond market, where an epic change in sentiment sent 10-year yields tumbling the most in a year even after data showed inflation accelerated at the fastest rate since 2008 -- normally a recipe for a spike in rates and trouble for stocks with high valuations. Instead, the Nasdaq 100 jumped 1.7% over the five days for a fourth straight weekly gain. The yield drop took the shine off value stocks, with banks slumping 2.4% in the week.