What Happened?
A number of stocks fell in the afternoon session after a deepening Treasury selloff and higher oil prices pushed the benchmark 10-year yield to 5.218%, reinforcing expectations of further Federal Reserve rate hikes.
Morningstar reported that stocks slid and technology shares led early declines as the week began, a week that also includes key jobs data. A Treasury selloff means investors are selling U.S. government bonds. When bond prices fall, their yields, or the return investors receive, rise. Higher yields tend to weigh heavily on technology and software stocks. Much of the value of these companies is based on profits expected many years into the future.
When investors can earn more than 5% on relatively safe government bonds, those distant earnings become less attractive in comparison, which can lower the prices investors are willing to pay for growth stocks. Rising oil prices add to the pressure because they can push inflation higher. Persistent inflation could lead the Federal Reserve to keep raising interest rates, increasing borrowing costs for businesses and consumers. The upcoming jobs report may give investors more clues about the Fed's next steps.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Developer Operations company JFrog (NASDAQ: FROG) fell 0.3%. Is now the time to buy JFrog? Access our full analysis report here, it’s free.
- E-commerce Software company Commerce (NASDAQ: CMRC) fell 4.8%. Is now the time to buy Commerce? Access our full analysis report here, it’s free.
- Sales Software company ZoomInfo (NASDAQ: GTM) fell 2.9%. Is now the time to buy ZoomInfo? Access our full analysis report here, it’s free.
- Lending Software company Upstart (NASDAQ: UPST) fell 3.3%. Is now the time to buy Upstart? Access our full analysis report here, it’s free.
- Project Management Software company monday.com (NASDAQ: MNDY) fell 5.3%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
Zooming In On monday.com (MNDY)
monday.com’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock dropped 4.6% on the news that markets remained volatile during the last trading session of the week, reflecting growing uncertainty, with the broad market retreat erasing the sector's gains from the previous day. As detailed by CNBC, major market averages initially dropped on Wednesday following the Federal Reserve's first interest rate hike in three years, then staged a strong tech-led comeback on Thursday, before falling once more. According to market commentators, after tech stocks surged during Thursday's rebound, investors quickly engaged in widespread profit-taking on Friday as the benchmark 10-year Treasury yield crept back above the critical five percent threshold.
As highlighted by financial analysts at Reuters, this elevated volatility reflects the market grappling with tighter borrowing conditions, where climbing risk-free rates uniquely pressure high-valuation software providers by increasing the discount rate applied to their future cash flows.
monday.com is down 44.9% since the beginning of the year, and at $79.09 per share, it is trading 61.5% below its 52-week high of $205.24 from October 2025. Investors who bought $1,000 worth of monday.com’s shares 5 years ago would now be looking at only $239.88.
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