Super Micro Computer, Inc.
(NASDAQ:SMCI) is bucking the broader selloff Monday, trading roughly 4% higher even as the Nasdaq gets hammered — a notable reversal after the stock was pummeled 8.5% on Friday.
What Sparked the Drop Friday's pain came from two directions.
May payrolls came in at 172,000 — more than double the 80,000 consensus estimate — pushing the 10-year yield above 4.5% and leaving little room for the Federal Reserve to cut rates anytime soon.
That's bad news for high-multiple growth stocks like SMCI, whose valuations are heavily dependent on the expectation of lower rates ahead.
