Shares of several companies in the broader technology sector, including Lam Research Corporation (NASDAQ:LRCX), ON Semiconductor Corp (NASDAQ:ON), Applied Materials, Inc. (NASDAQ:AMAT) and NXP Semiconductors NV (NASDAQ:NXPI) are all trading lower amid a rise in bond yields, which has weighed on growth stock valuations.

The U.S. 10 Year Treasury yield has risen sharply in recent sessions, jumping from the 1.49% level on December 31 to 1.79% during today’s session. This sharp rise in US Treasury yields has pressured growth sectors. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

See Also: Why Discovery Shares Are Rising Today

Shares of chip and semiconductor stocks were otherwise trading higher during Monday’s session. A weekend report from the Semiconductor Industry Association showed November sales of $51.7B. Additionally, a report from Euler Hermes showed expected semi sales growth of 9% for 2022.