DraftKings Inc. (NASDAQ:DKNG) shares traded lower on Wednesday. The stock has been volatile recently amid rising Treasury yields.
What To Know: Discretionary stocks such as DraftKings have been hit hard recently. Last Thursday, the 3.7% year-on-year increase in the Consumer Price Index (CPI), as opposed to the 3.6% estimate, caused a selloff in the broader market due to concerns of growing inflation and future rate hikes. Treasury yields rose in response to the data.
While DraftKings stock recovered earlier in the week, the market was hit again by rising Treasury yield woes on Wednesday. The cause of the rise was related to President Joe Biden’s announcement of an “unprecedented support package for Israel,” amid the ongoing Israel-Hamas conflict. 30-year yields rose above 5% and yields on 10-year Treasuries reached 4.9%, the highest level since 2007.
During the current period of high inflation and rising yields, shares of discretionary stocks like DraftKings may be particularly impacted as consumers are likely to spend less on their goods and services, which are considered non-essential.
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DKNG Price Action: Shares of DKNG were up 0.28% at $28.64 in the after-hours session at the time of publication, according to Benzinga Pro.
Image by Oleg Gamulinskii from Pixabay
