Big tech’s stock market leadership threatened by rising rates

 Big tech’s stock market leadership threatened by rising rates
New York: Megacap technology stocks rallied through a global pandemic,
fears of a bubble and rising regulatory scrutiny. But the bond market could be the hurdle that finally trips them up.

Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Facebook Inc., the five largest U.S. companies, have delivered reliable outsized gains to shareholders for years. This week was different, as a selloff erased more than $300 billion from their combined market value and sent the Nasdaq 100 to its worst week since late February.

The reason? A sudden spike in Treasury yields that sent tremors through Wall Street, causing investors to flee stocks with the highest valuations because their distant earnings gains will be less valuable as rates rise. The moves exposed a rare vulnerability for tech giants, whose strong balance sheets, powerful profit engines and steady business models have kept them going through periods of tumult and…

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