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Long-duration stocks faced heavy selling pressure Friday as the U.S. 10-year Treasury yield climbed to 4.33%. Investor Gary Black, Managing Partner of The Future Fund LLC, issued a “duration risk alert” on X.
He noted the yield sat at 3.95% before the war began.
Yield Spikes Hit Growth Names
Black highlighted that rising rates impact companies like Tesla Inc (NASDAQ:TSLA), AeroVironment, Inc. (NASDAQ:AVAV) and Palantir Technologies Inc (NASDAQ:PLTR) most. These “long duration” stocks see their future cash flows discounted more heavily when yields rise.
Black said that if Brent crude prices remain elevated and higher 10-year Treasury yields persist, losses could continue.
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