Why Unity Software Stock Rocketed Over 12% Higher Today
Shares of 3D content-creation platform Unity Software (NYSE: U) soared 12.9% higher today as of market close. It was a fantastic day of market outperformance, given that the S&P 500 Index was up just under 0.2% and the Nasdaq Composite was up 1.8%. https://finance.yahoo.com/quote/U/?p=U
Even after today's jump, though, Unity stock is down 70% so far in 2022 and 82% off of its all-time highs reached late in 2021.
A myriad of factors contributed to Unity's rally today. The most apparent was a falling 10-year U.S. Treasury yield, which ended the day at a 2.8% annual yield compared to about 3.5% in mid-June. Lower interest rates increase the present value of risk assets like stocks, especially those of high-growth companies like Unity that don't generate a profit yet. Conversely, higher interest rates lower the present value of stocks, which is one of the reasons Unity has been stuck in free fall this year.
Source Fool.com
