Tech companies are typically categorized as growth companies, so their stocks are the most sensitive to changes in market rates or related expectations. That is why they first led the decline in the US stock market, and then the papers of Apple, Amazon and Tesla became the locomotive of corrective growth.

   Chart of the Nasdaq 100 (white, right-hand scale) and 10-year US Treasury yields (blue, left-hand scale) at 1-day intervals. Source: Bloomberg

In mid-June, the US stock index Nasdaq 100 reached multi-month lows in the 11,000 area, and the yield on 10-year US government bonds hit multi-year highs of about 3.5%. Since then, the Nasdaq 100 has gained almost 20%, while 10-year Treasury yields have fallen by about 1% amid rising recessionary risks.

Tech companies are typically categorized as growth companies, so their stocks are the most sensitive to changes in market rates or related expectations. That is why they first led the decline in the US stock market, and then the papers of Apple, Amazon and Tesla became the locomotive of corrective growth.

Further dynamics of technology stocks will depend on expectations regarding the further actions of the Fed, which is still very determined. In addition, these companies reported well for the second quarter, which is another very positive factor, in addition to the decline in treasury yields. In the meantime, the Nasdaq 100 has reached the top of the descending channel in which it has been since the beginning of the year.