Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are near session highs Friday afternoon, up 3.7% to $106.70. Shares of several semiconductor stocks are trading higher amid a rebound in tech stocks.
Stocks across sectors are rebounding after falling earlier due to a rise in Treasury yields following September jobs data. Yields have also pulled back from earlier highs.
Why It Matters
When Treasury yields fall, fixed-income investments like bonds become less attractive compared to equities. Investors seeking higher returns may be more inclined to invest in stocks, including technology stocks like AMD. In general, lower competition from fixed-income investments can drive up demand for stocks.
Additionally, high growth and technology stocks like AMD are often sensitive to changes in interest rates. When Treasury yields rise, it can lead to concerns about the present value of future cash flows, causing stock valuations to come under pressure.
Conversely, a pullback in yields can alleviate some of these concerns and support higher valuations for growth stocks.
See Also: Economists Reassess Fed’s Next Moves After September’s Stunning Job Numbers
According to data from Benzinga Pro, AMD has a 52-week high of $132.83 and a 52-week low of $54.57.
