Two days into 2022 and we’re seeing another round of selling in growth names, especially software, fintech, medical devices and e-commerce. Many names are retesting their November and/or December lows. We have seen a few names crack their 200-day lines, while a few others have begun to rebound intra-day.
There’s very little stock-specific news driving this action. Headlines suggest a jump in the 10-year yield is the culprit, which is plausible. The current yield of 1.665% is at the top end of the last three months’ trading range. Previous runs to around here have brought about some selling in growthy names before.
Meanwhile, we also see a host of larger, slower-growth large-cap names continuing to do very well. Examples include IBM (IBM), Ford (F) and Visa (V) and Mastercard (MA), just to flag a few.
My inclination is to think this is a retest of recent lows for many stocks. But nothing is off the table. We will likely see how the afternoon closes and tomorrow morning begins before making any major decisions.