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US Treasury Yields Hit 5% as Wall Street Faces New Rate Regime

US Treasury yields reached 5%, and Wall Street is facing a new rate regime.

What happened

US Treasury yields hit 5%, according to Bloomberg Markets, and Wall Street is facing a new rate regime.

What it means for the Nasdaq and TQQQ

Higher Treasury yields can raise the discount rate used to value future corporate earnings, which tends to pressure growth stocks that dominate the Nasdaq-100. Because TQQQ seeks about 3x the daily return of the Nasdaq-100, the fund can be especially sensitive to those rate-driven swings.

Originally reported by Bloomberg Markets. Written up by Quant Paradise from the report's headline; see the original outlet for full details.

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Education, not investment advice.