Adam Hejl
3 min read
What Happened?
A number of stocks fell in the afternoon session after the benchmark U.S. 10-year Treasury yield climbed back above 5% to levels not seen since 2007, lifting discount rates on long-duration growth earnings. According to CNBC, the 10-year yield surged to 5.23% on Friday, its highest level since 2007, after trading below 4.8% earlier in September. CNBC reported Monday that the yield was again pressing multiyear highs — above 5.23% in morning trade — as oil stayed elevated and investors braced for PCE, GDP, and jobs data. Macquarie strategist Thierry Wizman told CNBC the move reflects not only sticky inflation and Fed hike odds, but also heavy Treasury and corporate bond issuance, including AI-related borrowing. Higher yields raise borrowing costs and make distant cash flows look less attractive versus safer government bonds — a setup that tends to hit consumer-internet names such as DoorDash, Carvana, Reddit, Match, and Bumble harder than slower-growth sectors. Morningstar, citing Dow Jones, similarly said technology shares led early declines as the selloff in Treasuries extended into jobs week.
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:
-
Social Networking company Reddit(NYSE:RDDT) fell 3.8%.Is now the time to buy Reddit? Access our full analysis report here, it’s free.
-
Online Marketplace company Teladoc(NYSE:TDOC) fell 3.2%.Is now the time to buy Teladoc? Access our full analysis report here, it’s free.
Zooming In On Reddit (RDDT)
Reddit’s shares are extremely volatile and have had 60 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 18 days ago when the stock gained 6.7% on the news that Piper Sandler audience measurement data indicated that the platform’s user base expanded 8% month-over-month in August 2026, marking its fastest monthly pace of the year. According to the research, the monthly acceleration pushed Reddit’s year-over-year audience growth to 18.0%. The pickup in user traffic reflects expanding reach and stronger engagement across the social media platform. Investors closely monitor active user metrics as a key indicator of underlying business health and future advertising revenue potential, driving optimism around the company’s growth trajectory.
