Bond yields move relentlessly higher, as Wall Street wonders how much more tech stocks can take

The move higher in bond yields reflects a straightforward market mechanic: when fixed-income yields rise, the income they offer competes more directly with the future earnings that growth companies promise. Because technology stocks derive much of their value from profits expected years down the road, those future cash flows are discounted more heavily when yields climb — a dynamic that can pressure valuations even when the underlying businesses are unchanged.

Last week, investors hoped the selloff in bonds had run its course. Monday's trading suggested otherwise, with yields resuming their climb and raising fresh questions about how much more the tech-heavy segments of the market can absorb. The tension is not about any single company's results, but about the rate environment those results are being measured against.

What to watch from here: whether yields stabilize or continue rising, whether the pressure stays concentrated in longer-duration growth names or broadens across sectors, and whether upcoming inflation and labor data shift rate expectations. For now, the bond market is setting the tone.