Tech Stocks Ignore Bond Market Signals: Morning Brief

Despite the surge in U.S. 10-Year Treasury Note yields and expectations of more rate hikes this year, tech stocks have been largely unaffected, decoupling from their historical correlation with bond market movements. While the tech sector took a small hit, some AI-hyped names like Microsoft and Alphabet managed to perform well. The bullish moves in tech stocks suggest that bubble economics are trumping real-world factors. Meanwhile, the disparities between the manufacturing and services sectors persist, with consumers driving economic growth through spending on services. The markets can remain irrational for longer than expected, and it remains uncertain when the manufacturing and services sectors will align again.