Stocks slip, bitcoin rallies following GDP reading

Yahoo Finance’s Jared Blikre breaks down how markets opened on Thursday.

Video transcript

BRAD SMITH: Markets as of right now have moved into the negative territory for the major averages. Let's get on down to Jared Blikre on the floor of the New York Stock Exchange and get some details on what's at play in today's tape. Early on in the session, Jared, what are you seeing?

JARED BLIKRE: Well, it seems like everything is going on, and nothing is going on because it is the summer. But we do have some news. Obviously, we're reacting to that. On the YFi Interactive, I want to start with the 10-year T-note yield. Now, yesterday, I was outlining this head and shoulders formation that has now broken to the downside. We don't have confirmation. I'd like to see at least a close or two.

But when we have lower rates, that spooks-- excuse me, that gooses tech stocks and the growth trades. So we could see a kind of echo bubble here in the form of a bear market rally of what we saw before. And that's lower rates, which are getting priced in right now, the next downturn in the economy being resurrected by the Fed with some money printing.

Another thing that's really interesting about the rally yesterday was it was being led by Bitcoin. And I thought it was kind of funny at the time, and I was pointing it out, but it might be kind of a harbinger or maybe some kind of-- I'm trying to find the word to describe it. It might be trying to forecast something for the market. Sorry, I'm trying to find my thoughts here.

But Bitcoin and cryptocurrency in general has been led by Fed money printing. And so the anticipation that the Fed is going to step off of the brake and get the economy going again by printing this money could be a, I guess, a potential catalyst for Bitcoin and, also, risk markets in general. So I think where we're going with this, where I'm trying to go with this, is, we could have an echo bubble here. It looks like the markets are discounting a lot of negative price action in the markets. But at the end of the day, it's kind of a coin toss, isn't it, guys?

BRIAN SOZZI: I got one for you, Jared. Yesterday, we saw a face ripping rally in cryptocurrencies. That's one easy way to put it, I think. Jared Blikre, always great to see you, my friend. I'll talk to you soon.