Ark ETF, Tesla Stumble as Surging Rates Weigh on Market Darlings
- Benchmark 10-year yields see largest jump in three years
- High valuation growth stocks come under pressure as rates rise
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The quickest rise in bond yields in three years is starting to dim the appeal of some stock-market darlings.
With the economic outlook brightening, Covid-19 cases falling and more fiscal stimulus on the horizon, yields on benchmark 10-year Treasury notes have jumped 23 basis points so far in February, which would be the most for any month since the start of 2018. Much of the move happened in the last few days. Consequently, it’s growing more difficult to justify sky-high valuations for expensive areas of the stock market.