Stock futures fall, crude oil plunges, bitcoin dips below $21,000

Yahoo Finance Live anchors discuss stock futures after Tuesday’s steep decline.

Video Transcript

JULIE HYMAN: Let's take a look at what's going on in the markets because we had one day up and now we've got, of course, one day down. Actually, two days up, one day down, in this case. So the bounce that we saw was not very long lasting. So Dow futures down by 400 points this morning. S&P futures pulling back 1.4%. NASDAQ futures down by 1 and 1/2%. And Brad, we are going to be hearing from Fed Chair Jay Powell in just about a half hour's time, testifying before Congress. And you can see yields at 3.16% ahead of that. Actually, yields, a big drop in yields on the day.

BRAD SMITH: Yeah, the Fed Chair really going to be defending some of the FOMC's committee actions, the policy decisions to this point. And even going further forward from here, how they can continue to enact this policy without tipping the economy into a recession. That's going to be a big topic of conversation within that hearing.

JULIE HYMAN: It will, and one of the concerns-- one of the ways that the concerns about recession is feeding through into the markets is also with crude oil futures. We're seeing them pull back again today. And in fact, we've seen a pullback over the past several days, the five-day chart down by 6 and 1/2% on some of those concerns, even as we get reports that President Joe Biden is set to ask Congress to approve a gas tax holiday. And then also, I know you're keeping a close eye--

BRAD SMITH: Oh, yeah.

JULIE HYMAN: --on Bitcoin, continuing to keep a close eye there, as it, too, is pulling back.

BRAD SMITH: Yeah, and this is what we were talking about last week, early last week, when I brought up this 20,000 level and where we could possibly find ourselves just rangebound within this 22 to even on the bottom end 20,000 level. And that's exactly where we're sitting right now, near that 20,000 marker. And that's off of yesterday's move higher.

However, one of the other major ones-- and I don't know if we have a look at Ethereum even, but I'll just kind of tie it all together here. Because Ether as well as we've been keeping a close eye on the price action there, Ethereum still sitting around this 1,100 range, and even, at times, dipping below 1,000. Keep a close eye on that psychological marker as well, going forward from here.

JULIE HYMAN: Well, it's clearly risk-off again.