Shares of technology companies rose as a plunge in Treasury yields lured more investors to the sector.

The "long duration" nature of tech companies' growth potential means that the valuation of the sector is affected by changes in the "risk-free" rate of return on the Treasury markets, strategists say. Muted inflation data caused a precipitous decline in Treasury yields Tuesday, and the companies that trade on the furthest-off growth expectations -- including Artificial Intelligence chipmaker Nvidia -- rose to new all-time highs. Shares of Nvidia tested the $500 level for the first time.

The SPDR Select Sector Technology exchange-traded fund, which tracks the tech industry group of the S&P 500, rose 2% to a new closing high of $182.04 and is up 48% for the year to date.

Khosla Ventures, fresh off the phenomenal success of its investment in ChatGPT owner OpenAI, is in the final stages of raising $3 billion for its latest set of venture funds, bucking a broader slowdown in Silicon Valley investment activity.

Foxconn Technology, one of Apple's biggest suppliers, said it has contingency plans in case the company faces repercussions in China over its founder's bid for the Taiwan presidency.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

11-14-23 1802ET