Market check: Stocks extend losses after tech sells off
Yahoo Finance Live anchors Brian Sozzi and Julie Hyman examine market and industry losses, particularly in the tech sector.
Video Transcript
BRIAN SOZZI: But first, Julie, I see you are toiling around the YFi Interactive. What do you have?
JULIE HYMAN: Yeah I am. You ready to do a double take here Brian, because--
BRIAN SOZZI: Let's do it.
JULIE HYMAN: --you mentioned, oh people are worried about interest rates. If you look at the 10-year yield, there is zero sign of that. We continue to see this remarkable move lower in bond yields even as we see stocks also sell off. So in other words, yields and stocks moving down together here today. And 1.38% here does not reflect a lot of concern about higher interest rates.
You know, I know there are some other technical factors going in on in the bond market, but it is still just unbelievable to me to say that the Fed is expecting to raise interest rates three times next year and to have a 10-year yield of 1.38% and trending lower even after the Fed meeting earlier this week. So, you know, you try and put some rhyme and reason on this markets, good luck here because we are seeing-- we've seen the tech stocks really interest rate-sensitive, right.
Interest rates are down today, and we're also seeing big-cap techs down. So that sort of narrative is not necessarily working in today's session. I don't know what narrative is working in today's session because also if you are seeing this sell-off like we are seeing today, and we are talking about a lot of the omicron headlines, you know, you might expect some of the stocks that are the sort of work-from-home stocks to be coming back. DocuSign is not coming back, right. That stock is down another 1% today. This is one of the companies that had benefited from work-from-home, from that big migration.
The stock fell, of course, recently, after coming out with earnings and it's not recovering. And the rest of big tech is also trading lower here today. So it's just really interesting. If you look at travel stocks today, they are down as well, but not across the board. So it's not as though-- in other words, you can't put the sort of omicron concern filter on top of the market today. You can't put the interest rate filter concern on top of the market today.
I don't know what narrative you can put on top of the market today other than we are seeing risk off and I'm sure witching has something to do with all of this as well, Sozz.
BRIAN SOZZI: Well, I think the narrative here, Julia, is we can't wait for this session to end. And let's get this tequila flowing because it has been a long week.
