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Stocks slide to 2022 lows amid rising market volatility

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Yahoo Finance's Emily McCormick reports on the stock market sell-off.

Video Transcript

RACHELLE AKUFFO: Well, let's get you that quick market check, as you mentioned there. 24 hours since that Fed announcement that the markets celebrated. Today, though, as you can see, the Dow there losing more than 830 points, down 2.74%. The S&P down more than 3 and 1/2% there, losing 137 points. And the NASDAQ down almost 4 and 1/2% there, losing almost 500 points. Let's get a breakdown of this with Yahoo Finance's very own Emily McCormick. Emily, what happened?

EMILY MCCORMICK: Well, Rachelle, it's another ugly day in these markets. The selling pressure returning here to Wall Street. Now as we can see, the S&P 500 is now trading at its lowest levels of 2022, down about 23 and 1/2% for the year to date and on track for its lowest close since December 2020. Now, a similar story when we take a look at the NASDAQ composite, which is now down even more sharply for the year to date, down more than 30%. And the Dow Jones Industrial average trading below that key 30,000 level.

Now, I also want to highlight what we're seeing in the CBOE Volatility Index, or VIX. As we can see here, it is still up on an intraday basis, trading just below that 34 level. However, for the year to date, we've still not taken out those highs that we saw in March, which many traders and strategists are saying is really one of the key signs to watch for, as we keep an eye out for capitulation, that peak selling potentially here in these markets, so still waiting for that on the VIX.

Now, taking a deeper dive into what we're seeing in the NASDAQ 100, definitely an ugly picture here. We do have just a couple two stocks, two components of this index that are holding on to narrow gains here, whereas most-- the vast majority are trading sharply in the red, led to the downside here by Lucid Group.

Then also want to take a look within the S&P 500, all 11 major sectors also in sharply negative territory. And I do want to highlight that the sectors that we're seeing lagging to the downside here are those cyclicals, as investors are increasingly seeing the risk of a recession rising. So energy, for example, which had been an outperformer for the year to date, as it is a cyclical sector, with these concerns of recession, now down nearly 6%.

Then I also want to shift over to some of our sentiment indicators, some of the ETFs that investors look for to take a gauge on the market sentiment. And we are seeing homebuilders, for instance, down nearly 7%. And that's after we saw that 30-year average fixed mortgage climbed by the most since 1987 and rising yet again in the latest weekly data.

Then finally, I want to get a quick check on what we're seeing in cryptocurrencies. Still, again, a risk-off tone that we're seeing here. Bitcoin prices now moving to the downside by about 2%, also holding near their lowest level since December 2020 and holding just above that $21,000 level. Guys.

SEANA SMITH: All right, Emily. Thanks so much.