Bond Yields Climb Again as Wall Street Weighs Tech Stock Limits

Wall Street wanted last week's bond rout to be the worst of it. Monday indicated otherwise.

Bond yields kept moving higher, extending a sell-off that has rattled equity markets and put the technology sector — the market's dominant heavyweight — squarely back under pressure.

The question now dominating trading desks is straightforward: how much more can tech stocks take?

Rising yields hit growth stocks hardest because their valuations rest heavily on future earnings, which get discounted more harshly as rates climb. Technology names, with the loftiest valuations in the index, carry the most exposure.

The fresh leg higher on Monday shows the bond market has not finished repricing. Investors who hoped the previous week's rout marked a bottom got a clear signal that the pressure continues.

For equity strategists, the calculus is increasingly uncomfortable. Every additional basis point on benchmark yields tightens the screws on the premium valuations that carried the Nasdaq's leadership through the past year.

The bond market's insistence on moving higher suggests the adjustment is not a one-week event. Until yields stabilize, tech's ability to lead the market higher remains in doubt — and every session of rising rates will test how much punishment the sector's premium valuations can absorb.