Shares of Fastly (FSLY 8.67%) were rising this morning as some investors were tempted to come back to technology stocks following three months of the sector getting pummeled.
The tech stock was up by as much as 7% this morning and had gained 4.9% as of 11 a.m. EDT.
There wasn't any company-specific news causing Fastly's stock to jump this morning. Instead, investors were likely reacting to the fact that Fastly's stock is down about 20% year to date, making the stock look like a good buying opportunity.
Technology stocks have been sliding since the beginning of this year as many investors exited the sector, looking for new areas of growth.
Investors have been watching the rising Treasury yields closely and as they've risen over the past few months investors have been worried that high-growth tech stocks won't be able to borrow money as cheaply as they have in the past.
Tech stocks experienced tremendous growth during the pandemic, but as the economy has started to open back up and more vaccines are being distributed investors think that other stock sectors may be better places to put their money.
Now, it seems, some investors are shifting their attention back to technology stocks because they look cheaper.
Investors can likely expect Fastly's stock to continue fluctuating. Treasury yields are still trending higher and tech investors appear to be jumping in and out of the tech sector as they try to predict how the economy will perform as the U.S. begins to emerge from the pandemic.