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Dow plunges by over 800 factors, British pound and crude oil costs proceed to slip

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Yahoo Finance Reside breaks down the volatility seen throughout markets, foreign money exchanges, and power commodity trades.

Video Transcript

SEANA SMITH: Dow, S&P, NASDAQ all firmly within the pink, proper across the lows of the periods right here as we enter the ultimate hour of buying and selling. You’ll be able to see the Dow now beneath 30,000, a five-day chart. Clearly, it has been a brutal week for the markets. Over the previous 5 days, Dow now off simply round 5%. On an intraday foundation, the NASDAQ falling beneath 11,000, as we have seen numerous these bigger cap tech giants right here getting hit, as we have seen rising charges.

Clearly, the sturdy greenback right here weighing on the broader markets. S&P falling effectively beneath 3,700, now on monitor for 3,600. We had Goldman popping out at present, decreasing their yr finish goal on the S&P. So actually some worry out there motion at present. And actually, we will say that concerning the market motion for the week.

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Over the previous 5 days, you possibly can see the S&P off simply over 5 and 1/2%. I wish to pull up the VIX. The worry gauge index actually crucial right here to regulate. Spiking above 30 right here, actually reveals a few of the worry on the market out there proper now. Additionally the 10-year yield pulling again only a bit, now off simply round 2 foundation factors at 3.69. It did prime 3.8 earlier within the session at present.

Let’s check out a few of the sector motion right here as a result of, once more, we’re seeing pink throughout the board. Now, on an intraday foundation, you are power off simply over 7%, the XLE off 7%. Weak spot in power is an enormous story right here in at present’s market. Shopper discretionary supplies among the many worst performers for the day.

After which having a look on the previous 5 days, a really related image right here. All 11 of the S&P sectors within the pink. Power by far the laggard, off practically 11%. Shopper discretionary, actual property right here among the many largest laggards. Shopper staples, I suppose you possibly can say, it is the very best performer of the bunch. It is nonetheless off, although, simply round 3 and 1/2%.

All proper, let’s get you up to the mark on the foreign money motion right here, driving numerous the losses that we’re seeing play out within the equities markets. You will have the sturdy greenback clearly a headwind right here for the market. The greenback index as soon as once more shifting greater at present. Jared Blikre has a more in-depth have a look at that for us. Hey, Jared.

JARED BLIKRE: Hey there. Nicely, let’s check out our warmth map, which has to do with the currencies. And all this inexperienced and darkish inexperienced is the US greenback strengthening. This can be a five-day worth motion. I am simply going to point out you what occurred at present solely. The British pound up 3.7%. That is a tremendous transfer by cable right here. By the way in which, that is inverted. Normally, we have a look at the foreign money cross the other way up. However 25% over the past yr means numerous consternation.

And I’ll present you the max chart. Now we return to the early 2000s, however you possibly can go all the way in which again to concerning the Eighties. We’ve not seen a worth right here for the reason that Eighties. We’re speaking about Margaret Thatcher. And what which means for all these currencies is extra ache. And when we now have these extremely leveraged currencies, guess what? Establishments are pressured to leverage and typically promote their good holdings for dangerous holdings with the intention to increase money for potential margin calls.

So let’s have a look. I simply wish to present you. I am penning this up for the weekend. And I’ve a graphic right here ready right here. We’ve got the Argentine peso and the Turkish lira tied principally for the highest spot, weakening in opposition to the greenback by about 40%. Then we now have the krona over in Sweden and the yen. Now, these are two developed market currencies.

And when you could have this type of motion in international alternate in these markets, as I stated, pressured deleveraging might trigger extra ache. And we’re seeing that play out this week, with the NASDAQ heading to the bottom price– the Dow heading to the bottom worth since November of 2020. All in all, not the very best week for currencies, and far much less, equities, guys.

DAVE BRIGGS: All proper, thanks, Jared. Let’s recover from to Ines Ferre, who has a test on oil power simply completely crashing at present. Hello there, Ines.

INES FERRE: Yeah, Dave, and crude closing out its fourth consecutive week of losses. Let’s check out our YFi Interactive board. We’re watching WTI, which closed beneath $80 a barrel at 78.74, its lowest shut since early January. On a technical degree, it might be heading in direction of $75. You then’re brent crude, down greater than 4 and 1/2%, closing simply above $86 per barrel.

Why the declines? Nicely, the sturdy US greenback that Jared was simply speaking about, worries of a recession as central banks increase rates of interest, and China nonetheless has that zero COVID coverage, an enormous concern for demand going ahead. Taking a look at another power merchandise, we’re gasoline futures, which at present additionally declined by greater than 5%, and likewise pure fuel punching beneath $7. The truth is, a 12-day chart, you possibly can see that pure fuel is down virtually 17%, guys.

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