Stocks mixed at open, tech sector under pressure

It's the final trading week of June and stocks (^DJI, ^IXIC, ^GSPC) open the Monday session mixed with the Dow Jones Industrial Average leading the charge with slight gains from the get-go.

Morning Brief's Madison Mills and Brad Smith monitor the movements of the major market averages, the Technology Select Sector SPDR Fund (XLK), and Russell 2000 (^RUT), while Jared Blikre provides analysis of the broader market trends seen in the tech sector.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

We got the Dow Jones industrial average right now starting off today in positive territory.

We're taking a look at fractional gains right now by about a quarter of a percent.

The NASDAQ composite though, uh, the opposite move there.

As things are calibrating, you're seeing that calibrate lower by about 3/10 of a percent S and P 500 flat trying to make up its mind out of the gate.

Let's populate this chart for you.

Nobody likes a blank chart, so let me give you a five day view, right?

There's some green to be found there Anyway, Let's take a look at these sectors real quick, Mattie, and I'll let you take it away from there.

11 S and P 500 sectors that we got loaded on screen.

Yeah, interesting seeing XL K The biggest downward pressure point when it comes to the broader sector action.

That's the technology sector, of course, obviously a great performance year to date, but see a little bit of pressure, primarily driven by the downward pressure we've seen in NVIDIA stock.

That company is set to wipe off $300 billion of its market cap heading into the trade today, depending on how the movements go as we lead into the close.

But one thing that I've been looking at and I know Jared will talk about this is yeah, You can see NVIDIA clearly down a little over 2% there.

Uh, we saw the Russell outpacing the broader market last week, and I know I keep bringing this up, but it's a question about whether or not that can be a catch up trade for folks who maybe didn't get in on NVIDIA when the time was right.

You could also argue that right now we're gonna buy an opportunity for NVIDIA because of that downward pressure.

Yeah, the Russell is still down about a quarter of a percent year to date, but heading into the close last week, we did see some upward momentum.

And now we're seeing the Russell up nearly a quarter of a percent today as well.

But we're going to get into more detail with that because we've got Yahoo Finance's Jared Blick looking at what's moving Jared, what do you got?

Well, thank you, Matty.

Let me just start out with the broader index.

This is the S and P 500 on a year to date basis, and all I want to point out here is that we are just by record highs.

The S and P and the NASDAQ have been up eight of the last nine weeks looking to make it, I believe nine out of 10 now.

And so a lot of people are saying, Well, is a market due for a pause?

I would add that seasonal head winds, uh, don't really come into play until at the very least mid July.

In fact, seasonal tail winds are extremely bullish for the next few weeks.

Doesn't mean that we have to go up, but that is what would be more likely than not.

So here's the V. This is also year to date, but I want to point out we're at the highest level in three weeks there.

And, uh, when you como when you combine this with some other facts.

Last week we had huge inflows into tech.

Um, we saw I think it was the biggest record.

It was the biggest flows that we've ever seen into tech.

Sometimes that is a sign of capitulation.

And here we have, uh, we're just talking about XL K. That is a large cap sector tech sector ETF.

We just had that big rebalance.

Remember that This is the first day of that rebalance when Apple is going to be weighted less.

And there was about $10 billion worth of selling and NVIDIA supposed to be bought.

But if you're looking at here, the movements are about opposite.

What you would expect there apple up in NVIDIA is down.

This is because I think all of that rebalancing footwork was probably put in last week.

And we're just seeing some, uh, broader risk off today in the chip space.

Having said that, let's move on to the chip space and see Yes, NVIDIA, down 2% Qualcomm down 3.5% Super micro computer.

Uh, down there S MC I That's also down about 3.5%.

So all in all, um, kind of a mixed market to start the week.

Some people looking for a broader sell off, but again, those, uh, the tail winds, the bullish tail winds Just last a few more weeks, guys