Why Amazon Shares Are Falling

Shares of large-cap US stocks, including Amazon.com, Inc. AMZN, are trading lower amid overall market weakness as Fed rate hike outlook and economic concerns weigh on market sentiment.

U.S. indices at large are also trading lower on continued weakness following comments from Federal Reserve Chair Powell suggesting a rate hike of 50 basis points is possible for May. The Fed has indicated it may move quicker on rate hikes to curb inflation.

Fed policy outlook, rising Treasury yields and quarterly earnings reports have dragged markets lower in April. Last Tuesday’s session saw a 3-year high of 2.940% for the 10-year note. 

The 10-year note has risen from a low of 0.5% in 2020 to nearly 3.0% in April. In general, earnings years into the future are worth less today when interest rates rise. A rise in Treasury yields also correlates to a rise in bonds, which has the effect of dissuading cash from flowing into high-growth, high price/earnings stocks.

See Also: What's Going On With Microsoft Stock Today?

According to data from Benzinga Pro, Amazon is trading lower by 4.74% at $2,782.99. Amazon has a 52-week high of $3,773.08 and a 52-week low of $2,671.45.