Why MercadoLibre Stock Got Chopped Today | The Motley Fool

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What happened Shares of MercadoLibre (NASDAQ:MELI) fell today even though there was no news out on the Latin American e-commerce company. Instead, it was one of a number of high-growth stocks that pulled back sharply today as investors were spooked by fears of rising Treasury yields, which entice investors away from growth stocks and into other options like bonds. MercadoLibre stock finished the day down 5.4% while the 10-year Treasury yield rose 1.6% to 1.48%. Image source: MercadoLibre So what All other things being equal, rising Treasury yields tend to be bad for the stock market as they make bonds more appealing to investors because of the higher yields. This also means that earnings valuations are likely to fall as interest rates rise. Comments from the Federal Reserve about tapering its bond-buying programs, which keeps interest rates artificially low, and higher inflation seem to be pushing Treasury yields higher. Growth sto
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