(Bloomberg) -- Amazon.com Inc. shares fell sharply on Monday, with the e-commerce giant falling back into negative territory for the year, as a sustained rise in Treasury yields is hurting the earnings outlook for companies with high valuations.
The stock fell 2.9% in its sixth straight daily decline, the longest such streak since an eight-day drop that ended in August 2019. With the drop, the stock is now down 2.1% for 2021, making it the only one of Wall Street's five largest names to be negative for the year.
The day's weakness was widespread, as the rise in Treasury yields also pushed investors out of tech and other high-growth areas of the market.
Among other mega-cap stocks, Apple Inc. fell 2.5%, Microsoft Corp. dropped 2.1%, Alphabet Inc. declined 2.1%, and Facebook Inc. sank 4.9%. Despite the declines, however, the others all remain in positive territory for the year, with gains ranging from Apple's nearly 5% advance to Alphabet's surge of more than 50%.
The rise in yields has pressured tech names, as investors calculate that future earnings gains will be less valuable amid higher rates. The 10-year Treasury yield is currently around 1.49%, up from 1.3% on Sept. 22.
Read more: Big Tech's Stock Market Leadership Is Threatened By Rising Rates
“Yields are likely to be biased higher for the time being as the world (and monetary policy) normalizes and inflation proves more durable than hoped,” the research firm Vital Knowledge wrote in a report. While some tech investors view the decline as temporary, “we think this time is different.”
The closely watched NYFANG+ index -- which includes 10 highly liquid tech and internet stocks -- is down more than 9% from a Sept. 7 peak. Tesla Inc. is the only stock in the black during that period.
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