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Tech, energy worst-performing S&P 500 sectors today

Yahoo Finance's Jared Blikre breaks down how S&P 500 sectors are trading on Thursday as well as the relative performance between the Dow and the Nasdaq.

Video Transcript

[AUDIO LOGO]

RACHELLE AKUFO: All right. Turning now to the major markets. Let's get to Yahoo Finance's Jared Blikre for a look at how the markets are shaping up as the year has almost coming to an end, Jared.

JARED BLIKRE: I got to tell you, Rachelle, the Santa Claus rally technically does not begin until tomorrow. It's the last five trading days of the year plus the first two of the following year. But this is kind of representative of what has happened this year. The NASDAQ is the worst off. It's down 2 and 1/2% while the Dow is down 1 and 1/3%, but it's outperforming here.

Let me just take a quick survey of the landscape, and then we're going to get into some bigger picture stuff. Here are the S&P 500 sectors for today. Tech, consumer discretionary, energy, all taking it on the chin. Tech is the worst performer here. That's XLK down 3%. I want to show you what's happened this year in the NASDAQ versus the S&P or actually versus the Dow.

Here is the NASDAQ, and you can see where we made this record high in the first day of the year. And we are now still camping out by the lows of the year. Now, you contrast that with the Dow, all right, we hit these lows in, I believe, that September, October in there. And now we have rallied. We're in about the midpoint, having clawed back about half of those losses.

Now, if you plot the gains of the Dow versus the NASDAQ, and this goes back to the beginning of the NASDAQ in the early '70s, we get this little histogram here. So when it's spiking up, that means the Dow is outperforming as it is right now, as it has been all year long. Now, this down here was during the pandemic when growth stocks in the NASDAQ was outperforming.

I show this here because this is very similar to the magnitude and breadth so far of this downturn of this very same pattern that we saw around Dotcom bubble. So this was a very long bear market. This took several years to play out. And so everybody who is trying to frontload or frontrun that pivot this year who got stomped on maybe want to wait a little bit until the next year until reassembling or resizing those bets or trying to reassess to see what the program is.

So bottom line here, the Dow has been outperforming the NASDAQ. Is that going to mean revert? Probably got some time before that happens, guys.

RACHELLE AKUFO: So Santa's not quite coming to town just yet. But we're keeping an eye.

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