Shares of DocuSign (DOCU 0.17%) jumped today, along with the broader tech sector, as investors reacted to falling bond yields.
The tech stock was up by 10.8% as of 3:26 p.m. EST on Tuesday.
There wasn't any company-specific news driving DocuSign's share rally, but investors are likely reacting to bond yields moving down today after rising over the past couple of weeks.
Some investors have been leaving high-growth tech stocks like DocuSign recently as bond yields were rising. Rising yields can indicate that other parts of the economy are growing, making the tech sector (which has been red hot since the pandemic began) look less enticing. With several COVID-19 vaccines available and infection rates generally trending down, some investors are looking to other areas of the market now.
But with bond yields falling today, it appears that some are now shifting back to tech stocks.
Even with the recent market volatility, DocuSign's stock has gained 154% over the past year. And while today's share price bump was certainly welcomed by investors, they should also remember that buying and selling stocks based on daily movement in bond yields isn't a great long-term strategy. Instead, they should stay focused on DocuSign's business fundamentals.