Bond yields move relentlessly higher, as Wall Street wonders how much more tech stocks can take

The move higher in bond yields resumed on Monday, dashing hopes that last week's selloff had run its course. Rising yields matter for equities because they raise the discount rate applied to future corporate earnings. That pressure tends to fall hardest on technology and other growth stocks, whose valuations rest on profits expected far out into the future rather than on near-term cash flows.

The dynamic helps explain why tech shares have struggled alongside the bond market. When investors can earn more from government debt, the appeal of paying a premium for distant earnings diminishes, and rotation toward value-oriented sectors can follow. This relationship is not mechanical, but it has been a reliable feature of rate-driven selloffs in recent years.

What to watch now is whether yields stabilize or continue climbing, and whether the pace of the move stays orderly. A gradual rise tied to stronger growth carries different implications than a rapid, disorderly repricing. For now, the market's central question remains how much higher rates can go before equity valuations, particularly in tech, are forced to adjust further.