Shares of technology companies rallied as traders rotated back into risky sectors.
Tech stocks have become sensitive to Treasury yields, which tumbled after the new UK government abandoned plans for a tax cut for the nation’s highest wage earners.
The yield on the 10-year Treasury note fell to its lowest level in roughly two weeks. Markets remained on edge, however, amid concerns that elevated interest rates could cause more events like the UK crisis.
“The tipping point from tightening monetary conditions to quench inflation to an over-tightening of financial conditions threatening the liquidity of the financial system is very small – as the recent sovereign bond market action has shown,” said strategists at brokerage Jefferies, in a note your clients.
European tech conglomerate Prosus abandoned its roughly $4.2 billion acquisition of Indian payments platform BillDesk, the latest tech takeover to collapse amid the market selloff.
Investment firm Peak Rock Capital agreed to buy Spatial Business Systems LLC, a developer of network-design software for utilities and other infrastructure operators in a deal that values Spatial between $100 million and $200 million.
Write to Rob Curran at [email protected]
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