Stock futures sink as volatility spikes worldwide
Yahoo Finance Live anchors discuss stock futures.
Video Transcript
JULIE HYMAN: Here are the three things that you need to know right now. We have to start with the global selloff that's going on here. You have your global map, and you see a lot of red on the screen from Hong Kong, off 3.8%, Tokyo, 2 and 1/2%. The selling continuing over in Europe, down more than 1% across the board for the major European averages. And all of this following on the selling that we saw last week for the major averages here in the US.
Well, that's not right that we saw over the five-day period. Where we saw a negative on the week-- that's what the bottom line is. It was the fifth straight weekly decline for the averages here in the United States, and that's the first time we've seen that, going back to June of 2011. And guess what, folks? The selling continues here this morning for the US futures. Dow futures off by almost 400 points, indicating a drop of 1.2% at the open here this morning.
And you've got the other futures, S&P futures off 1 and 1/2%, NASDAQ futures down the most of the three. It is-- they are off by about 2% here this morning, as we see just a lot of negative sentiment going on. We're going to talk more about that in a moment. But I've got to look cross asset a little bit here this morning. And the US dollar index, which is now pulling back a little bit, but we had been seeing a lot of people looking for safety. And one of the places they were seeing it was in the US dollar, but that looks to be rolling over a little bit here this morning.
Gold futures also rolling over a little bit, interestingly, even though we had been seeing some buying into gold over the past week or so. Now that is no longer the case. So where are people looking for safety? Not exactly clear this morning. Oil is down by 2 and 1/2% here as well this morning. And Bitcoin, which we're going to get more to in just a moment, is also seeing a lot of selling pressure this morning. So, guys, this is really, again, an ugly setup on what has already been an ugly period of time.
Let's go into the NASDAQ 100 here as well to look at large cap tech because, of course, that's where we have seen the most selling pressure likely. The bottom numbers here are the pre-market trades. And you see really a lot of selling here. Again, Amazon already at a 52-week low, set to fall another 3 and 1/4%. Tesla set to fall 4%. Alphabet set to fall 2%. Apple set to fall 2%. Whew!
BRIAN SOZZI: You know where you could find safety, Julie? Under a blankie with an egg sandwich. I think that's the only place where you can find safety right now. Look, I've been getting notes all morning long. We could be seeing more forced selling. A lot of folks in the market, at least here, are getting concerned about a next wave of selling, maybe today, maybe later in the week, as we get more Fed speak. But that is the major concern on Wall Street. Higher rate-- fears of higher rates, fears of higher inflation, fears of corporate earnings slowdown. So, again, you're really getting the sense of an increasingly nervous market.
BRAD SMITH: And increasingly as well, on the consumer front, exactly how different households, individuals, are adjusting some of their own spending right now. You take a look at the XLY pre-market here, that one of the biggest sector decliners that we're checking in here on the YFi Interactive as well right now, down going into today's trading session.
JULIE HYMAN: Yeah, it was down 1 and 1/4% on Friday, down another 2% here this morning, along with tech one of the big losers here. Just one more thing that I forgot to mention that Sozz reminded me of when he mentioned what's going on with rates here this morning. When you see what's happening with rates, are people looking for safety in the Treasury market? It depends on where.
We are seeing a little bit of buying in the five-year note, because there, you're seeing the yield go down. Remember when people buy, prices go up, yields go down. But we did see the five-year yield the highest since September of 2008 earlier. So elsewhere on the yield curve, though, we've still got selling and yields going higher.
