Stocks plunge in market sell-off, Nasdaq closes 3.4% lower

Markets turned blood red on Monday, closing the session lower after widespread selling activity: the Dow Jones Industrial Average (^DJI) sank by 1,033 points (2.6%), the Nasdaq Composite (^IXIC) dropped off by 570 points (3.43%), and the S&P 500 (^GSPC) fell by 160 points (3.0%).

Julie Hyman and Jared Blikre recap the day's market performance after the closing bell, highlighting movements in Treasury yields (^TYX), the volatility index (^VIX), and various sector losses.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video Transcript

That is the closing bell on Wall Street, and now it's market domination.

Over time, we are joined by Jared B Bry, to get you up to speed on the action from today's session, Let's start with where the major averages ended the day.

Not really off the lows.

Not very much here.

The Dow down 1000 33 points, 2.6% when all was said and done, the S and P 500 at one point during the day made a little bit of an attempt and more of a recovery before sliding through days and finishing off by almost even 3% and the NASDAQ down by 3.4%.

All of this sort of triggered in part by the worse than expected job support on Friday.

That's when the selling began, and then a growing perception that the Federal Reserve is behind the curve in terms of its rate cuts added to that the action on the part of the Bank of Japan last week sending the dollar lower against the yen and so reversing some of the carry trades.

We're going to talk about that later in the hour, but all of that affecting things, utility spiking today and also seeing the 10 year yield interestingly earlier, going much lower and then finishing the day kind of flat.

So, Jared, it's been an interesting one, to say the least.

Yes, it has.

The big question is, Do we continue selling tomorrow, or do we continue this bounce off the lows?

And really, I've seen arguments pretty good arguments either way, although the disaster scenario is looking less and less likely with some of the strength we saw off of the low.

Let me just show you the vics real quickly, and I'll get that behind me.

We shot up to 65.

This was, uh, as Julie you mentioned earlier.

This was the biggest single day increase point wise in the Vicks.

Ever going back to, uh 1990 Still ended up by 38.

That is a big number there.

Here's the five year, and you can see in relation to the pandemic.

Uh, that we got there, the pandemic bump, Uh, still pretty high there.

What I think is, uh, notable is that it was higher than anything we saw in 2022.

All right, let's get to some heat maps here.

Sector action.

Everything in the red.

Only tech was under performing down over 3%.

But seeing a lot of other sectors, most of them down more than two industrials off 1.67%.

That was the best.

When we take a look at some of the leaders, Bitcoin took the biggest hit, uh, down 14% from Friday.

Uh, cannabis.

Also not doing well, uh, Korean stocks, which is heavily leverage to the chip market.

New York fame.

Not surprised not doing that well.

But also, I want to show you China because China, actually, one of the few screens with some green today, uh, maybe a little bit of rotation there or things are maybe just a little bit less bad over there, but trip.com up 2.5% EDU up about 9%.

So a little bit of green at the end of a harrowing day.

I don't know if that's where you have to look for your green Jared.

Uh, I don't know.

It's over lining anywhere, I guess.

Thank you.

Appreciate it.