The three major averages (^DJI, ^GSPC, ^IXIC) all closed higher on Tuesday, February 6. They were led by materials and real estate, two sectors that have been beaten down recently. Tech, however, lagged.
Yahoo Finance Market Reporter Jared Blikre takes a closer look at the market action.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Eyek Ntekim
Video Transcript
JARED BLIKRE: Well, let's dive into the sector action. Two of the worst sectors from the last couple of days are now the best. That's materials and real estate. They were responding to that surge in dollar and the surge in rates. That kind of reversed today, at least they're holding, that is rates in the dollar.
Now health care is in third place. And then we have industrials, consumer discretionary, and utilities rounds out the top row. And then in the bottom row, we have communication services and tech. Those are the two best sectors over the last year. Might be seeing a little bit of rotation or maybe a little bit of defensiveness. The AI trade, as expressed through Nvidia, definitely faltering today.
I want to show you a two-month chart here with Nvidia. In fact, let me dial it down to a one-month, so you can see this candle. This is getting a lot of attention today, kind of a hammer candle. You can see, it's red and it's big and it's by itself almost in terms of the space above it. And this just points to the potential of a topping formation. But I'm a big believer that you have to wait until the next day to see how things close tomorrow and then get another candle for that pattern before we get too ahead of ourselves.
But let me just show you what happened in semiconductor land. You can see not an entire sea of red, but AMD down 3.5%. Qualcomm just treading water there. Our components, so disruption having a decent day. For that matter, running on totally different fundamentals is China. It looks like leadership, they're closer to maybe putting some support under stocks. But don't get your hopes up, their backs are against the wall. Nevertheless, Alibaba up 5%. Pinduoduo up nearly 4%. Guys.
