Why Salesforce Stock Rallied Over 2% Today
Shares of "digital transformation" software leader Salesforce (NYSE: CRM) were up 2.3% today as of 12:55 p.m. ET. That compares with a flat day for the S&P 500 index and a 1.7% gain for the Nasdaq Composite.
Software stocks have been absolutely hammered so far in 2022 as the market punishes high-growth but richly valued companies. Salesforce has been no exception. Even after today's small bounce, shares are down 32% on the year and 47% off of all-time highs reached in late 2021.
Helping Salesforce outperform today is a deteriorating 10-year Treasury yield. Though the U.S. Federal Reserve is hiking interest rates, the market is now fearful that a recession is all but unavoidable -- thus lowering rates, at least for the time being. Lower interest rates increase the present value of risk assets like stocks, especially growth stocks like Salesforce.
Source Fool.com
