Shares of Fastly (FSLY -0.67%) popped today, likely as a result of falling bond yields. The broader tech sector has made significant moves based on bond yield prices lately.
The tech stock was up by 10.9% at 11:35 a.m. EST.
Tech stocks have taken a hit recently as bond yields have risen. For example, Fastly's stock is still down about 12% so far this month, even with today's share price pop.
Investors have been concerned that rising bond yields will hurt high-growth companies like Fastly as some investors shift their focus away from companies that could ride out the pandemic. Bond yields have been rising over the past few weeks, so some investors have exited the tech sector.
But yields fell to about 1.54% as of this writing, after reaching 1.6% yesterday. That slight drop was enough to convince some investors to get back into the tech sector.
With the NASDAQ nearing correction territory yesterday, tech investors are likely very happy that the market is bouncing back today.
Long-term Fastly investors don't need to worry much about the daily changes in bond yields. The yields essentially change nothing for Fastly's business, so it's probably best to ignore the daily share price swings and instead focus on the company's plans for long-term growth over the next few years.