Market check: Energy leads stock losses, bond market moves lower

Yahoo Finance Live's Jared Blikre breaks down how stocks are moving as U.S. recession concerns continue to linger.

Video Transcript


JARED BLIKRE: Welcome back to "Yahoo Finance Live." I am Jared Blikre. And let's get a quick check of the markets here. Inauspicious start to this holiday-shortened week. We got the Dow down about 569 points, 1.8%. Going to check in on the NASDAQ. That is the least bad on the day. That's down about 1/3 a percent. And the S&P 500, that is down about 1 and 1/2%. Want to check in on our longer term chart here. Here is a two-month chart with some candlesticks. And we are still pretty much in the range over the last few trading sessions, extending into the last two days of last week. So nothing big just yet. But we'll have to see what comes of the rest of the week.

And here's the VIX, the SIBO volatility index. That is hovering just below 30 right now. Not seeing too much in the way of market-making news right there. And the bond market continues to track lower. The five-year down now 10 basis points. This is something that we need to watch because we also have a huge movement up in the US dollar. And it's not about interest rate differentials necessarily this time around. I believe it is about the haven flows.

And here we can see-- here's the US dollar index. I'm going to put a max chart up on here so you can see. Taking out these levels, we haven't seen these levels in over 20 years. And by the way, the next stop is 120. That is much, much higher. So something to think about as we watch the dollar put pressure on all the markets, or most of the markets today. But energy really taking it on the chin. That is reflecting the higher dollar price. That is down 5%, followed by utilities and materials. Materials also highly levered to that sector.

Now, we take a look at what's going on in the NASDAQ. Again, the NASDAQ not down as much as the other majors today. We see Alphabet down 1%. Amazon-- oh, excuse me, Alphabet up 1%. Amazon up 2%. So some of these growth names that have been getting hit hard recently have been perking up. And I want to show you what's going on in the software space. Really nice to see some green here. Contrast that with what we're seeing in the semiconductor space, semiconductors under a lot of pressure here over the last 10 days. Consider the difference with software here. So if you're betting on what might go up in the next flashy bear market rally, guess what? Might be a little bit of software.