U.S. markets closed
  • S&P 500

    3,585.62
    -54.85 (-1.51%)
     
  • Dow 30

    28,725.51
    -500.10 (-1.71%)
     
  • Nasdaq

    10,575.62
    -161.89 (-1.51%)
     
  • Russell 2000

    1,664.72
    -10.21 (-0.61%)
     
  • Crude Oil

    79.74
    -1.49 (-1.83%)
     
  • Gold

    1,668.30
    -0.30 (-0.02%)
     
  • Silver

    19.01
    +0.30 (+1.62%)
     
  • EUR/USD

    0.9801
    -0.0018 (-0.19%)
     
  • 10-Yr Bond

    3.8040
    +0.0570 (+1.52%)
     
  • GBP/USD

    1.1166
    +0.0043 (+0.38%)
     
  • USD/JPY

    144.7200
    +0.2770 (+0.19%)
     
  • BTC-USD

    19,343.93
    -185.99 (-0.95%)
     
  • CMC Crypto 200

    443.49
    +0.06 (+0.01%)
     
  • FTSE 100

    6,893.81
    +12.22 (+0.18%)
     
  • Nikkei 225

    25,937.21
    -484.84 (-1.83%)
     

Stocks open lower as volatility rises

Yahoo Finance’s Jared Blikre breaks down how markets opened on Monday.

Video Transcript

BRAD SMITH: Welcome back to Yahoo Finance Live, everyone. We're taking a look at the major averages. They are lower across the board. Fed fund futures and two-year yields pushing higher post-Powell. So what does this mean for all of those important tech stocks? Jared Blikre joins us in studio now with the breakdown. Jared?

JARED BLIKRE: Yes, we're going to get to those tech stocks in a second. The Dow is actually underperforming right now. We have that down 7/10 of a percent. S&P a little bit less worse off. And the NASDAQ, that is down about 43 basis points.

Let's quickly check in on the sector action, then we're going to get into some longer term charts. Here we see only energy is in the green here, but that's up about 1/3 of a percent. Materials, that is down over 1%. Utilities and real estate, health care, all of those are the biggest laggards. So the defensive sectors are actually lagging the most. That could be a little bit bullish. We'll see if there's a turnaround in the day.

When I say bullish, I've got to caution here because we had that huge downdraft on Friday. That's a big negative candle. Let me show you a year to date and the last time we saw something like this. Every time we've been breaking to new relative highs-- and here is what happened last May, early June, we have sold off considerably. And this has been on a repricing of interest rate expectations for the Fed.

Now, if we take into context what's happening with tech today, you've got to look at the bond market. Here's the 10-year T note yield. That is actually up 5 basis points. And when you take a look at what's happening with the very short end of the curve, here we have the 13-week T-bill rate. That is up 3/10 of a percent.

So all of this putting upward pressure on all stocks right now, not just those tech stocks. But they are taking it on the chin as well, guys.

BRIAN SOZZI: Jared, hit us with some expert VIX analysis here.

JARED BLIKRE: Well, let's take a look at what's happening with volatility in the bond market first because this has been kind of driving the bus. Now, we saw volatility in the bond market actually take a dip on Friday. That's pretty interesting, given the moves that we saw in equities. But here's the 10--

Actually, let me get to the VIX itself. There we go. And we can see this is higher. Now, we came back down a few days ago to potential support. This was in August, that met these numbers that we saw in May and April. So not surprising to see lift off from here.

But I want to leave you guys with one final chart. And this is going to be the VIX curve. So this is where we were one month ago. This is where we were a week ago. And guess what. We are elevated across the curve going out one, two years, today. So volatility on the rise, guys. I don't know if there's any end in sight. But S&P 500 at the 4,000 level, very important potential support.

BRIAN SOZZI: Awesome stuff, Jared Blikre, thanks so much.