What happened
Shares of Fastly (FSLY +11.17%) were climbing this morning as the technology sector rebounded from its losses yesterday. The tech stock was up by 3.5% as of 11:31 a.m. EDT.
So what
The broader tech sector took it on the chin yesterday as some investors grew worried about rising 10-year Treasury yields. Investors dumped some of their tech stocks as a result, as higher yields make fast-growing companies' future earnings look less appealing.
Image source: Getty Images.
As a result, the tech-heavy Nasdaq Composite was down more than 2% at the end of yesterday's trading.
But investors appeared to brush off much of those concerns today and were snatching up technology stocks again. As of this writing, the Nasdaq Composite was up by 1.6%, and Fastly was rising along with it.
Now what
Fastly's shares have been on a bit of a wild ride over the past year. The company's share price skyrocketed during most of 2020 as its business benefited from an increase in online traffic brought on by pandemic-induced lockdowns and social distancing.
But its price has since retreated and is down nearly 60% over the past 12 months.
Today's gains will be welcomed by current Fastly investors of course, but investors should be cautious about making any long-term investing decisions -- for either buying or selling a stock -- based on a stock's single-day performance.
