Tesla Inc TSLA shares are trading lower by 3.80% to $213.30 Friday morning. Shares of several growth companies, including Tesla, are trading lower amid a rise in treasury yields, which has pressured growth stocks. U.S. indices are also lower for the session as stocks give up gains following yesterday's rally as investors continue to weigh concerns over inflation.
The 10-year U.S. Treasury yield hit an intraday high of 4.006% Friday morning before dipping to around the 3.979% level. When interest rates rise, the value of future cash flows is reduced for growth stocks like Tesla, which in turn lower the value of the stock.
What Happened With Inflation Data Thursday?
According to data from the U.S. Bureau of Labor Statistics, the headline CPI rose 8.2% in September, down from 8.3% in August. The September CPI reading came in above average economist estimates of 8.1%.
On a month-over-month basis, CPI was up 0.4% versus average economist estimates for a 0.2% jump...Read More
See Also: September Inflation Runs Hot At 8.2%, Sending Stocks Spiraling Lower: What You Need To Know
Tesla shares are also trading lower in October amid overall market weakness after last week's better-than-expected U.S. unemployment data dimmed expectations for a Fed policy pivot. Continued hawkish Fed policy could negatively impact growth stocks.
See Also: Why Plug Power Shares Are Volatile Today
According to data from Benzinga Pro, Tesla has a 52-week high of $414.50 and a 52-week low of $206.22.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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