Why Nvidia Shares Are Getting Hammered Today

NVIDIA Corporation NASDAQ:NVDA shares are trading lower by 4.75% to $160.68. Nvidia is trading lower amid overall market weakness as well as consumer confidence concerns.

Shares of growth stocks have been volatile in the month of June amid an overall market selloff partially generated by worse-than-expected U.S. May inflation data. The all items index CPI datapoint increased 8.6 percent for the 12 months ending May, the largest 12-month increase since the period ending December 1981.

Inflation concerns have weighed on the economic outlook and have also raised expectations for further Fed rate hikes. A rise in treasury yields has also weighed on tech and growth stock valuations.

The rise in U.S. Treasury yields hinders growth companies such that, 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 Endo International Stock Is Soaring Today

According to data from Benzinga Pro, Nvidia has a 52-week high of $346.47 and a 52-week low of $153.28.