By Steve Goldstein
denis charlet/Agence France-Presse/Getty Images
The megacap technology stocks have been outperforming the broader market of late. The NYSE FANG+ index (XX:NYFANG) which includes Facebook (FB), Alphabet (GOOGL), Amazon (AMZN) and Apple (AAPL) has climbed 5% over the last month, compared with just 1% growth for the equal-weighted S&P 500 (XX:SP500EW).
Given the relief in bond yields, that makes intuitive sense. Tech stocks struggled when the yield on the 10-year Treasury (BX:TMUBMUSD10Y) rose as high as 1.75%, which by Thursday’s close had fallen down to 1.30%. The knee-jerk expectation in markets is that when interest rates rise, tech stocks fall, and vice versa.