Big Tech stocks have underperformed the S&P 500 for 92% of the year so far, according to Barclays. The U.S. 10-year Treasury yield hit a 20-month high of 4.8% on Tuesday, while the 30-year yield surpassed 5.2%, putting pressure on equity valuations. Multiple compression has been the primary driver of this underperformance, a scenario similar to 2022. However, Barclays notes that new AI-linked financing could ease capital expenditure concerns for hyperscalers.
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