Market check: Stocks fall across the board, bitcoin rallies

Yahoo Finance Live's Jared Blikre discusses the stock market falling as investors await this week's Fed policy-setting meeting, the correlation between bitcoin and tech stocks, and how increasing tensions between Russia and Ukraine are affecting global stocks.

Video Transcript


JULIE HYMAN: We continue to see deep selling here happening. And the Dow off, as you can see, by more than 600 points, about 1 and 3/4 of 1%. Our Jared Blikre has been watching all of the action here today. Jared.

JARED BLIKRE: Well, let's crank up the YFi Interactive and cross our fingers here. We're seeing a lot of red on the screen. Oh, it works, great. J&J up about 0.9%, American Express up over 5%. IBM up 1 and 1/2%. A lot of these are earnings stories. Aside from that, we're seeing a lot of red here.

Apple and Microsoft, both down more than 2 and 1/2%. Disney down more than 3%. And the big question is, was yesterday's low a capitulation low that's going to hold? Well, the evidence is making that very unlikely right now. You can see the tech sector, that's XLK in the lower right hand side.

That is off nearly 3% after getting shellacked yesterday morning. Now, as we were talking about, or as I was talking about around the opening bell, it looks like yesterday was a huge short covering rally and it was sparked by some put seller at the lows, technical reasons, doesn't really matter. But I think it just highlights the fact that this is very much a liquidity driven, event driven market, and sometimes the event is just a technical event, not even any news flow. Also seeing industrials, materials, and consumer discretionary, and communication services, all of those are down more than 2%.

And I want to check out the travel sector just to get a barometer here. Seeing a lot of red, not dark red necessarily, but Airbnb down another 4%. That was a stock that was down 10% at its lows yesterday. You can see still down about 10% over the trailing two days. And let's take a look at the chip sector. Lots of red on your screen there.

Nvidia down almost 5%. ASML, one of the biggest companies in the world, if not at least in China, that's down over 5%. Xilinx also down more than 5%. And in the software sector, not really looking that much better. We're seeing ServiceNow down more than 5%. Shopify down more than 7, and so the carnage there just continues.

Health care may be a little bit of a respite here. We talked about J&J before. Pfizer also slightly in the green. BioNTech up 2%. So some of the vaccine stocks, which have also gotten taken lots of hit recently, those are few of the green spots that we're seeing today.

Want to take a look at the banking sector, pretty similar story all around. Goldman Sachs and JP Morgan down 2%. And also the energy sector, the bright spot of the year, really not seeing a lot of love today. Exxon's down more than 1%. And some of the green spots, Royal Dutch, Shell, and BP, not even up 1% there.

Well, if we're talking about high flyers from yesterday, not yesterday, but I mean, yesteryore, yesteryear, we would see those in the EV space, but not today. We're seeing Lucid Motors down 3%, Rivian down 6%. By the way, someone just DM'ed me asking for the market cap drop in Rivian since its peak.

It peaked at about $155 billion. That was back in November shortly after its IPO. And let me get a chart here. And since then, today, it stands at about $53 billion. So cut-- got cut by 1/3, or it got cut to 1/3 of its previous amount. All right, also want to get a check of Bitcoin here.

And finally, Bitcoin, lots of green here. So nice to kind of see this play out. Let's get a five-day view. We saw that big drop down yesterday along with stocks. Is it holding? Yes, so Bitcoin kind of bucking the trend here, along with the other cryptocurrencies that we're tracking from the general market.

JULIE HYMAN: And really interesting there to see that correlation breakdown between Bitcoin and stocks as well, tech stocks in particular, which has really been in force as of late. Jared, something else that we've been watching. You know, as we talk about all the contributing factors to these declines. One of the things that we talked about yesterday, a little bit were increasing tensions between Russia and Ukraine and the implications for the globe. How are we seeing that play out, if at all, in the markets?

JARED BLIKRE: It's interesting, Julie. I was noticing Friday when we saw the market take another leg down. It seemed to be off of some headlines regarding the Ukraine. President Biden seemed to be greenlighting in one of his speeches the Russian invasion.

So markets are reacting to it. And when it comes to these geopolitical events, usually they're not big market movers. Even 9-11, you know, which happened in the middle of a tech bubble bursting, there was lots of other surrounding factors there. Even that, the old lows, or the old highs, were recovered pretty quickly.

So I think in this circumstance, and I'm going to go to the energy sector, actually let me get a chart of crude oil here. Because I think that's really what this comes down to, is the fact that Russia is a swing producer of crude oil. It's a member of the OPEC Plus faction. And let me see if I can get a crude oil quote.

Not really seeing the ticker. Oh, there we go. It is actually up 1% today. So in the midst of this market volatility, crude oil still holding on to the 84 level. I think is pretty bullish for it. And what happens if Russia does get out of line? They're going to face crippling sanctions.

There's going to be trade disrupted with Europe. And just the fact that they are that swing oil producer, I think it might be a little bit more meaningful than some of these other geopolitical events that we talk about. But we'll have to wait and see how this all plays out, Julie.

JULIE HYMAN: Hey, Jared, can you do me a favor and throw up natural gas there as well? Because I bet there are some implications there because there has been this sort of fight over the pipeline that comes from that area of the world. There we have it. You can see it's actually down today, but up over the past five sessions. But that has a lot of implications for inflation in Europe in particular, but here in the US too.

JARED BLIKRE: Yes, it does. And Russia has been playing some games with Europe. There is a brand new pipeline that the Europeans were counting on for it to deliver natural, liquid-- or liquid natural gas to them for heating purposes. And Russia's just kind of been playing with the spigot here.

There is a lot going on in this situation. We saw the energy crisis rear its head over the last few months. And if we get another cold spell or two, Russia has Europe exactly where they want them. Europe is a huge trading partner with Russia. US not so much. So it's really going to disproportionately affect them over there on the continent.