Russell 2000, real estate and solar sectors see gains

Multiple sectors across the world saw gains this week as the market rallied on steady inflation, falling oil prices, and lower Treasury bond yields. Yahoo Finance Reporter Jared Blikre joins the Live show to break down the latest sector action and what recent inflation easements could mean for market volatility.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

AKIKO FUJITA: Well, stocks are trading slightly lower this morning. But despite the red arrows on the board, all three averages are on track for the third straight week of gains. So which sectors drove this week's market's rally? Let's bring in our very own Jared Blikre at his favorite spot by the interactive.

JARED BLIKRE: Yes, you can always catch me here. Thank you, Akiko. Yeah, it's not just the US. Around the world, all of these indices are in the green, as you can see. The lowest one, China, that is the laggard.

But Russell 2000 is number one in the world among most of the major indices. That's up 5.3%. If I just quickly pull up a five-day chart, you can see after that monster day Tuesday, that was actually when we peaked. But we have only come off a little bit since then.

On a three-year basis still camping out by these lows and this giant trading range. But let me just tell you, I'm going to read off the countries on the top just to show what a broad swath this is. We have Brazil, we have Germany, Spain, Japan, Mexico, Saudi Arabia all up more than 3%.

And by the way, the NASDAQ is up 2.1%, the S&P too, and the Dow is up 1.8%. But let me get to the sector action and that's, kind of, what we're interested in here. Really interesting to see real estate up 4.4%.

Not often that we get a big outsized day in real estate, but we did Tuesday. That was one of the biggest days in years. And you can see, that monster gain-- excuse me, Monday.

And then also taking a look at materials, we did have a huge drop in the dollar, biggest drop in one day earlier on Tuesday. Consumer discretionary, that's up 3.4. Financials, utilities, industrials, all of those outperforming the S&P 500.

Just wanted to quickly show you what's happened over the last 15 days. Tech up 13%. That's when we got that rally off the October 27 lows.

But just sticking with what we're seeing this week, I'm going to go into some of our leaders. First thing that sticks out, what's negative. BITO, that is my Bitcoin ETF. That's down 3% although it did break out earlier than stocks. So it's sitting on some nice gains over the last month.

KRE, remember regional banks? Well, they're number one this week up 9.5%. Then we have solar up 8%, disruption 8%, meme stocks, homebuilders, retail, small caps, that's the Russell 2000 ETF.

And then it looks like transports as well. Interesting to track some of the disruption winners this week. Here we have the Ark components. Tesla had a really nice week up 10%, Shopify 11%.

One of the things I was writing about in the Morning Brief yesterday was this crowding that we tend to see at the end of the year. And indeed, we could very well see that. But my cautionary note is that don't expect stocks like Peloton to get back to break even those 2021 highs any time soon.

Also, taking a look at China, it's been interesting Alibaba had a pretty bad week. That was down 6% But aside from that, China also joining the parade here.

And then today's options expiration date, not any big fireworks. But another thing that happened this week was CPI. This chart goes back four years and it charts what happened on CPI days, job days, and Fed days?

Those were the three big things guiding the market and we had the biggest CPI day in exactly one year. And CPI has been closely tracking the rally in the S&P 500 that we see in the purple line. Suffice to say, investors are looking for that end of the year ride here.

Here's what the VIX tends to do into the end of the year. That is go down, that means it's bullish for stocks. And here is what it has actually done.

So maybe some of the heavy lifting been done, we'll have to see. But expiration-- excuse me, hopes for the end of November are that we do get a continued rally into the end of the month. And that has been the case so far, guys.

RACHELLE AKUFFO: And Jared, is it still too early to predict a Santa Claus rally?

JARED BLIKRE: You know, in light of the fact that we have pumpkin spice lattes in August, I don't think so. Although I would avoid it. Ask me again next week.

RACHELLE AKUFFO: Will do. Our very own Jared Blikre, thank you so much.