Here's Why Disney And Netflix Are Falling Today

Shares of streaming and media stocks, including Walt Disney Co DIS and Netflix Inc NFLX are trading lower in sympathy with the overall market amid a rise in U.S. Treasury yields as investors continue to weigh the Federal Reserve's rate hike outlook.

The 10-year U.S. Treasury yield is hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.660% Wednesday morning before dipping to around the 2.600% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

Disney is trading lower by 3.15% at $131.32. Netflix is trading lower by 4.00% at $364.96