Stocks tank ahead of packed week of earnings, Fed meeting

Yahoo Finance's Jared Blikre breaks down the market selloff across sectors.

Video Transcript

ALEXIS CHRISTOFOROUS: And the selling has just intensified on Wall Street. The Dow down more than 1,000 points, the S&P 500 now in correction territory, and the NASDAQ off about 4%. And Karina, more than a third of S&P 500 stocks are more than 20% below their 52-week highs.

KARINA MITCHELL: That's exactly right. It is an ugly-looking day across the board. And let's get right to those numbers. The Dow is seeing its seventh straight down day. It was off by as much as 1,000 points, slightly off session lows at this point. The S&P was down more than 10%. It is in correction territory as well, its fifth down day, and the NASDAQ falling deeper into correction, seeing the steepest declines. Looking at those numbers, you can see the NASDAQ is off by 483 points.

Sector wise, no safe place to hide. All sectors in the red. Tech is the biggest loser. Consumer discretionary and energy also seeing a down day today. And the VIX up near 40 at the moment. Over to the bond market to take a look what's happening there, and we can see the 10-year also lower slightly, slightly lower at 1.72. Now that is ahead of the FOMC meeting.

And Bitcoin also taking a bath before a remarkable reversal. It is now up by 33 points. That is hard to believe. About $130 billion was wiped off the crypto space in just about 24 hours. But now you see Bitcoin is in the green. That is about the only thing we see in the green. And with more on what is a grisly-looking day, let's bring in Yahoo Finance's Jared Blikre in studio.

JARED BLIKRE: Thank you, Karina. And let's get straight to the charts here. I don't even have to say let's go to the YFi Interactive. We are right here. Dow, as you said, was down about 1,000 at the lows. So it is off of the lows right now. And we can see on the intraday price action not by much right here. And so NASDAQ, that's really taking it on the chin. We saw the NASDAQ off 4% at these lows. And we haven't seen a down day like that in some time. S&P 500 not looking that much better. And the Russell 2000, just spent some time looking at a longer term chart, but the Russell 2000 set to enter a bear market on the close.

And how did we get here? Well, the Fed has definitely taken a hawkish pivot recently. But we have that big meeting on Wednesday. And we also have that big Chair Powell presser on Wednesday as well. I think that we have probably reached peak hawkishness in the Fed. And the Fed is going to dial back some of that. With the Russell 2000 in a bear market, with the S&P 500 and NASDAQ in correction territory, you've got to think, there's a little bit of dovishness coming our way. But is it going to be enough? The market will tell us.

Here, we have Apple and Amazon. Those are each off more than 3%. So are Alphabet and Microsoft, by the way, and Tesla off more than 6%. And just to make things a little bit worse, I'm going to give you the first 15 trading days of the year. That is 2022. We're seeing Amazon down 17%, Tesla right there with it, and Microsoft down 15%. Let's go to the sector action. And you can see, energy-- this is the last 15 days as well. Energy the only sector in the green, but we are looking at gains of 15%, 16%. Even energy getting wiped out here.

And let's take a look at the sector action for today. Tech the one dark red spot, that is down the most, about 3.25%, followed by healthcare. And, you know, if you are looking for some green, I will give you some green here. Kohl's on a merger Monday has some news. They basically affirmed the news-- looks like we got rid of that. They basically affirmed some of the news we got over the weekend about a possible takeover. And Wall Street analysts are saying that the price a little bit too low. So we're seeing some nice bounce here.

Let's take a look at some of the others. And we can see also that Shopify being down 4%, Amazon down 3% But some of those green names looking a little bit better. And let's see if we can find this on a market cap basis. Not really seeing the ticker I'm looking for. But we can see Macy's in sympathy-- maybe somebody would like to take over Macy's as well. Macy's up 11% today. So that is your source of green.

You take a look at the travel sector, looking pretty bearish here. Carnival Cruise Line, that stock is down more than 6%. So is Norwegian Cruise Lines. Airbnb down 11%. And let's take a look at a one-year chart. A lot of these stocks peaked one year ago. And that looks to be the case with Airbnb, now down 23% over the trailing year.

And we got to take a look at Bitcoin because, well, you blink, and it's gone back into the red. Sorry about that, Karina. But you take a look at what's happened over the last year. We have given back almost all of the territory gained since August. And we're getting down to that 28,000 to 30,000 level. That is a huge potential area of support. But if that breaks, look out. Look out below. I'm going to put a two-year chart on. We're going to see it could easily hit 20,000, even 13,000. But that is about the lowest price target at least that I have heard from the Street here, guys.

ALEXIS CHRISTOFOROUS: Wow, all right, Jared. We're going to talk much more about cryptocurrencies a little later on in the show, but thanks for finding some green amidst the sea of red today.