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Risky Tech Stocks Sink as Higher Treasury Yields Revive Inflation Fears

  • ARKK ETF, shares of non-profitable tech firms drop about 6%
  • Bleeding seen as a result of a rotation to value, quality

Stocks that were hammered at the end of 2021 are getting trounced again in the new year.

From expensive software makers to newly minted stocks, losses deepened Tuesday as a spike in 10-year Treasury yields renewed investor fears that higher interest rates would weigh on valuations. The ARK Innovation exchange-traded fund (ARKK), the poster-child of the frenzy over hyper-growth names, tumbled 5.4%, while a basket of profitless technology shares plunged almost 6%.