The Nasdaq Composite (^IXIC) has fallen by over 190 points — or almost 1.10% — in Monday’s trading, as the Dow Jones Industrial Average (^DJI) leaped ahead 260 points in the session.
Market Domination Overtime Host Julie Hyman and Senior Markets Reporter Jared Blikre recap the day’s market and sector action as the tech-heavy indices take a hit from Nvidia’s (NVDA) continued sell-off.
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
The Dow up by about 260 points or so about two thirds of 1%.
But we see a big divergence again today.
We talked about it earlier here that we continue to see some weakness in Tech.
That’s why the Dow here is outperforming.
It’s not as heavily weighted in that direction.
We’ve got the S and P 500 down a third of 1% the NASDAQ down by much more, 1% in part because of what’s going on with NVIDIA.
And then, as of lately, as we’ve been checking on that S and P equal weight index, it too is out by a pretty broad margin today, which gives credence again to this argument that perhaps the rally that we are seeing is broadening.
Although the S and P 500 itself, it’s not higher today.
The Russell 2000, also higher in today’s session that prompts me to take a little stroll on down here to the 10 year where we continue to see it around 4.25%.
Remember, the conventional wisdom has been that the small caps will really be able to start to take off in a more decided fashion when rates come down.
Jared, you’ve got a closer look at today.
Yes, well, another day of divergence between the NASDAQ and the Dow, as we’ve been talking about, kind of been a theme for the last few weeks.
But let’s check out the sector action today.
And here we have energy up 2.53%.
That is in the leading spot, followed by utilities with about half those returns.
Then staples so kind of a a defensive sector to the bish action today and what did not work well Tech XL K down 2.44% and then Consumer Discretionary, which also houses Amazon and Tesla.
And you can really see what’s at work here when you look inside the NASDAQ 100 full of those techy growth names, you’re seeing a lot of underperformance today, especially in the chip space.
So let me just switch over to our semiconductors heat map, where we see NVIDIA down over 6.5% Taiwan semi 3.5.
So is broad as ML Qualcomm down 5.5%.
So this also happens on a day when xlk, this is the first day of rebalance.
That happened after the close on Friday, when all those $10 billion of Apple shares were sold.
$10 billion of NVIDIA or thereabouts were bought, and the net result is, and that could have happened over a week.
But the net result is we’re seeing stuff down today.
Now, here are the leaders, and in the first spot, we have cannabis.
That’s the MJ harvest ETF.
Then we have small oil.
Then we have regional banks.
So, uh, some interesting stuff they’re going on at the top also.
So also, biotech up about 2% to the downside.
I’m gonna leave you guys with the crypto board.
There’s another area where we’re seeing a lot of losses that are pretty heavy.
Bitcoin down 7% guys.
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