Why Taiwan Semiconductor, Qualcomm, and Skyworks Solutions Fell Today
Shares of iPhone component suppliers Taiwan Semiconductor Manufacturing (NYSE: TSM), Qualcomm (NASDAQ: QCOM), and Skyworks Solutions (NASDAQ: SWKS) were falling more than the market Friday, down by 2.5%, 1.2%, and 0.9%, respectively, as of 10:43 a.m. ET.
There wasn't much company-specific news out regarding them, but each may be feeling the impacts of a combination of negative effects. The overall Nasdaq Composite index was down as yields on long-term Treasury bonds rose, perhaps reflecting the better-than-expected numbers from the Chicago Purchasing Managers' Index (PMI) report that was delivered Friday morning. Also, earlier this week, concerns arose over China's abrupt reopening and the resulting surges in COVID-19 cases there. Late Wednesday, a leading research firm lowered its outlook for near-term iPhone shipments due to the expected supply issues.
Technology stocks have had a pretty tight negative correlation with long-term interest rates in 2022, and on Friday morning, the 10-year Treasury Bond yield rose again by more than 6 basis points to over 3.9% at one point. While it's still below the 2022 high of 4.33%, the 10-year yield is well above its early December trough of just under 3.5%.
Source Fool.com
