Hydrogen and fuel cell stocks drop as rising Treasury yields pressure valuations and borrowing costs.

Hydrogen and fuel cell stocks, including Plug Power, Bloom Energy, and FuelCell Energy, fell due to rising 10-year Treasury yields nearing their 52-week high. Higher yields increase discount rates, reducing the present value of these companies' long-term projects and raising borrowing costs, which pressures their valuations. Despite Plug Power showing margin improvements and positive operational signs, its stock lags peers due to its negative EBITDA margin and reliance on asset sales for liquidity. Investors should watch Treasury yields and Plug Power's progress toward positive gross margins as key indicators for the sector's near-term performance.