Why Docusign Stock Fell 6.7% Today
Shares of document-management leader Docusign (NASDAQ: DOCU) fell 6.7% today, as of market close. It's a new year, but the narrative surrounding fast-growing tech stocks remains the same as it was for much of 2021: Fear of rising interest rates keeps pushing growth stocks down.
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Specifically, minutes from the Federal Reserve's last meeting indicate that a more aggressive raising of interest rates and other moves to try and tame inflation might be in store sooner rather than later. As a result, yields on 10-year Treasuries jumped to just over 1.7%, the highest they've been since March 2021, and are closing in on the 1.9% pre-pandemic rate at the end of 2019. As a reminder, higher interest rates reduce the value of future cash flows, which tends to lower the value of a stock in the short term.
Source Fool.com
