Yahoo Finance Stocks sell off, Dow drops over 420 points on inflation data
US stock market indexes (^DJI, ^IXIC, ^GSPC) end the day lower following a sell-off sparked by March's hot Consumer Price Index (CPI) reading on inflation. The Dow Jones Industrial Average fell by over 420 points as stocks pulled back.
Market Domination host Julie Hyman reviews the day's across-the-board losses — paying extra close attention to the 10-year Treasury yield (^TNX) and the Russell 2000 (^RUT) — while Jared Blikre evaluates the negative action across sectors, including banking stocks.
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
JULIE HYMAN: In the case of the Dow off by nearly 1% at 423 points was the drop here. The NASDAQ composite down about 8/10 of 1%. So not down more than 1% like we saw earlier. And the S&P 500 down, almost 1%. Just wanted to point something out that I noticed earlier here. There's been a lot of discussion about the pullback that we have seen in the S&P 500. But if you look at it from the highs, it's not even 2% down. So there has been more rockiness as of late. But percentage wise, it hasn't added up to that much when all is said and done.
Where we have seen a lot of the selling today has been in the Russell 2000. So if you look at the performance here down by nearly 3%, this today-- we were just looking at the year to date as well. It's little changed slightly to the downside for the year because this is a group that is seen as being especially vulnerable to higher rates. And speaking of higher rates just to check again, as we did earlier on that 10 year yield, which saw a big move upward today of 19 basis points to 4.56%. Jared.
JARED BLIKRE: Yeah. That's the biggest jump in a couple of years, there for the 10 year now. Let's take a look at some heat maps. Interesting day and you mentioned the small caps, Russell 2000, biggest component there are the financials regional banks got smoked. So we're looking at the NASDAQ 100 here behind me. You can see NVIDIA closed up 2%. Amazon, Meta also in the green. So the mega-caps not punished as a group although Tesla down 3%.
But let's check on those regional banks real quick because this is an ugly looking heat map with memories of maybe a year ago. I don't want to go that far. But here you see down 4%, down 6%, down 8% at the very bottom. Loeb and New York Community Bank down about 7.92%. But just looking at some of the leaders here, not a lot of green. Crypto crawling into the green by the end of the day. Oil also, some of its related ETFs in the green. But here's regional banks, KRE down 4.9%.
Korean stocks as a proxy for a chip stocks down 3.84%. Homebuilders down, solar down and cannabis down too. So the fringier parts of the market really not seeing a lot of love here. Here's our meme stocks and then I'll end with a little green here on the crypto note. And let's look at Bitcoin. Bitcoin up about two just short of 70,000 right now.
