Markets shift downward in afternoon session, tech stocks buckle under pressure
Yahoo Finance examines market losses ahead of the closing bell, recession worries from J.P. Morgan CEO Jamie Dimon, and the losses seen across the tech sector and semiconductor stocks.
Video Transcript
- Well, let's kick things off now before the close with a market check on the Interactive. We've seen it's been a volatile day for the major indices. Taking a look at the Dow that you saw started in positive territory. But as you can see, oscillating in afternoon trading. A similar case as we can see with the NASDAQ. Started in positive territory this morning. Way off the session lows. Though, still down, though, almost 1%.
And taking a look at the S&P 500, that's also down about half a percent. Also struggling in afternoon trading. And as we see how that translates in terms of volatility, we see that the VIX above 30 here, signaling that some of the signs of a possible recession certainly not helped today by JPMorgan Chase CEO Jamie Dimon warning of a likely recession in the next six to nine months.
Taking a look at what we're seeing in the sector action, we're seeing travel stocks under pressure. And that's as China re-imposed COVID-19 lockdowns with new daily cases tripling over the week-long holiday and right before a key government meeting in Beijing next week. You can see some of the ones most under pressure that. You have Trip.com. That's down about almost 6% there. And same with Wynn there, down almost 12%.
We also want to take a look at what we're seeing with the broader sector action here. As we can see, some of these mega caps under pressure. But as you break it down by sector here, we're seeing that in terms of the big winners of the day that are at least pulling ahead for now, we're seeing consumer staples in the green. Those are up about half a percent. Energy, though, there down about 2%. Seana.
- Rachelle, let's take a look at the tech sector. You were just mentioning some of the underperformers there, specifically what we're seeing in energy. XLK, the technology sector, not too far behind. On an intraday basis, off just around 1 and 1/2%. Year to date, clearly under pressure, as we've seen selling across almost every aspect of this industry here. Year to date, XLK off just around 31%.
The S&P tech sector lagging the broader index by the most since 2002. That is on a year to date basis. Taking a look at some of the individual movers within the XLK, why we're seeing such losses today, a lot of that has to do with the selling that we're actually seeing in the chip stocks. And take a look at this screen. You're really seeing a broad-based selling here. Nvidia, Qualcomm, AMD among the worst performers in this group. Intel, AMD, and Nvidia all hitting a 52-week lows.
So the selling that we saw started at the end of last week continuing into today. Really, I guess you can say that the selling has been happening since the start of the year. But we got that warning from AMD last week in terms of the third quarter revenue guidance. That weighed on the broader chip index. The new restrictions imposed from the Biden administration in terms of exports to China, that's a headwind here for this group heading into the fourth quarter and then into 2023. So a big reason why we are seeing that selling. And then I also want to pull up the Philly Semiconductor Index.
Taking a look at some of the movement that we're seeing today, the Philly Semiconductor Index on an intraday basis off just around 3% year to date. Off more than 40%. You can see that drop of just around 42%, the lowest level today that we've seen since November 2020. Also on track for that two-day drop. If we take a look at the two-day chart here, off just around 9%. That would be the largest two-day drop date that we have seen since March of 2020.
