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All three of the major indexes (^DJI, ^GSPC, ^IXIC) jumped at the start of trading. Investors are banking on some countries to come to the table to negotiate with the Trump administration on tariffs, though trade tensions with China continue to escalate.
Morning Brief anchor Brad Smith and Yahoo Finance Markets and Data Editor Jared Blikre break down the action at the open.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
That is the opening bell everyone. At the New York Stock Exchange, you have the fire department of New York Foundation bringing the opening bell and at the NASDAQ, you've got wise. They are of course, working in support of education wise. Great folks there as you're seeing, bringing the opening bell at the NASDAQ. Knowledge is power and the mitochondria is the powerhouse of the cell. I'm told. Let's take a look at the markets here at the gate this morning, you're seeing some gains just as the futures were pointing. Dow Jones industrial average up by about 3.5%. NASDAQ composite, you're seeing some strong gains there as well. That's up 3.7%. S&P 500 higher by more than 3.3%. And let's break it down just a little bit further here, as some of the activity certainly is in this turn of sentiment here, at least for the interim period that we're tracking in hopes that there could be some negotiations that signal an end of the beginning or beginning of the end, perhaps. You know, one of our guests broke it down much better earlier on, but essentially, what they were saying was that we're getting closer to the beginning of some of the negotiations. And so the end of the beginning is how they were putting it just a moment ago earlier as we began morning brief. And essentially, some optimism that's flurrying throughout the markets at least as of right now, early innings. We will see what those negotiations hold, but of course, we could still see some of those tariffs implemented and that is the larger concern here if we do see that go into effect tomorrow. One of the larger implications as well here has been for the NASDAQ composite and the pullback that we've seen more broadly, but now is this a bounce that we can believe in? That's the larger question for many investors, but it's a bounce that you're seeing out of the gate. This is the taste that you could see for a lot of traders out there early in the innings of today's session as we're taking a look. At my goodness, I had to check my blinders twice here and my own vision set. Because we've got massive gains across the board for all 11, S&P 500 sectors out of the gate. Technology leading the pack. That's up by about 3.7% and all 11 in positive territory, all of them up as well over 1.4%, 1.5% with the largest gains up more than an excess of 3% here. Let's take a look at some of those technology names here as you're taking a look at Apple, Amazon, Google, Alphabet, whatever you want to call them. Call them higher by 3%. Meta platforms that too higher by about 5% out of the gate here. Let's put a year to date chart on this just to give you a little bit more context coming into today's trade, as we're still down year to date by about 7.4%, but this has been one of the names that has been the best of the performers for the MAG 7 despite the pullbacks here. We'll see if that continues to hold true and Nvidia, let's check in on that. That's still down 22% year to date, but they are seeing that bounce starts to come into vision here as well. We got some longer though, downward trends in this channel here, is something that I'm sure Jared Blikre is gonna do a much more eloquent job of breaking down here and some of the key technical levels for traders to watch, but in the meantime, I'll just ride out with a quick look at the 30 components in the Dow Jones industrial average. They're all in positive territory. Let's get to Yahoo finances Jared Blikre for a look at what's moving here. Hey Jared.
Thank you, Brad. I totally feel you on the feeling like we are at the beginning of a new phase here and technically, this is how I'm seeing it playing out in the market. I'm gonna put a 10-year chart here because we had some really interesting developments yesterday. First of all, we have this line. This is the S&P 500. You can draw a trend line from the pandemic lows. We hit that yesterday on an intraday basis. We got all the way down it to 4800 and change and just lifted off. Now I'm gonna show you a five-year chart so we can see. And I'm gonna put some candlesticks here so you can see the price action from yesterday. We came down to the 2021 highs. That is now acted as support. So this could be the beginning of a bottoming process. And the emphasis there is that that is a process. It's something that has to be felt out. And here's the five-day price action. It does not look good. But yesterday when we rose to 50 to 50, that was where sellers came in once again. So we have this battle playing up between the bulls and the bears, and it looks like we may have an interim winner pretty soon. But that doesn't mean that all is clear. Uh, we could still have a resumption of volatility. You look at the VIX, it's still camping out just below 40. That is a very, very elevated amount. And you gotta think that any incremental news on tariffs that is to the bad, the bad side, the downside could result in more downside for equities here. So here's the 10-year T-note yield. Over the last two days it has shot up from the lows, 35 basis points. It is up nine basis points today. It was below 4%, now it's four and a quarter. That is a huge move there. And Thorsten Slok, he is the chief global economist over at Apollo Global Management, our parent company. He is pointing out that this is an unwind of the basis trade. And I'm gonna be explaining that uh, tomorrow on the live shows here for the audience. Uh, but real quickly, that's just where people buy cheap treasuries, or borrow and cheap money and leverage that in the treasury market. Yesterday was the unwind of that. So here's the sector action. Um, everything looks great. This is all green. Let me show you what it looks like from February 19th. That is critical because if you notice what's uh, lagging here tech is off the most, still down 21%. Consumer discretionary 7%. Those mega cap sectors down 14, XLC there. And then financials, industrials, materials, energy. A lot of those are the best off sectors today. So that's kind of fitting into the dead cat bounce narrative here, and we've gotta keep that in mind. Real quickly, I want to touch on the NASDAQ to show you that the MAG 7 are really surging once again, but I wanted to head over to futures where we have some interesting bounce back patterns. Now copper, which was at record highs only a few weeks ago has just seen a magnificent uh decline, unwind in copper. Now copper is bouncing today after the worst three days in 25 years. That's the entire electronic history I have for copper futures there. So copper making a little bit of a comeback. Gold itself is, uh, it dipped below 3,000 yesterday and is bounced back above. So we're seeing some recovery there and silver itself, silver dipped below 30 and now it is above, above 30 once again. I'm gonna leave us on crypto. Crypto has been really fascinating to watch because it was the least seemingly affected by all of this that was going on, but it did have a falling out over the weekend. However, it's bounced back above 80,000 and it appears to have stabilized. So this two kind of plays into that battle between the bulls and the bears. We might be at the beginning of this bottoming process. Back to you guys.
Alright, we'll be keeping an eye on truths and statements from the White House from here on out for the next 24 hours. Jared, thanks so much.
