Market check: S&P 500 set to enter correction, volatility spikes

Yahoo Finance's Julie Hyman and Brian Sozzi give an update on the market for today.

Video transcript

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JULIE HYMAN: Selling continuing here for the major averages, although we are off the lows of the session. Nonetheless, it is an alarming tumble for some investors, coming as it is on the top of what already has been selling in the markets. If you take a look inside the Yahoo Finance Interactive, our Jared Blikre just flagging what's going on in the volatility index. Now, the VIX, of course, is a reflection of what's going on more broadly in the market and the volatility that's out there, so it sort of holds up a mirror to the volatility that we're seeing.

And as he pointed out to us earlier today, the levels where we're seeing the VIX today is at the highest it's been since about November of 2020. So that perhaps alarming to some investors, again, as a reflection of what has been going on. Something else we've been watching has been the Russell 2000. Here's the three month chart of the Russell. If you go back to November 8 and map the downdraft that we've had since that time, it's a 20% drop.

And that means that the Russell, if it closes at those levels, is technically in a bear market. So the selling has been especially acute. You know, we talk about big tech all the time, but the selling has been more acute within the Russell 2000 here than it has been within large cap tech. Now speaking of large cap tech, let's take a quick look at what is going on on that front. We've got Tesla down, and most of the largest companies here, but everything, as you can see, is in the red.

There are a few green spots here and there, particularly it looks like in telecom and cable within the NASDAQ 100, but they're few and far between. We've got Bitcoin selling off not as heavily as it was earlier, but, nonetheless, still off by nearly 3% and just above $34,000. So, Soz, people have their places to pick from today in terms of risk aversion and how that's being expressed in this market.

BRIAN SOZZI: Yeah. And real quickly, Julie, you mentioned the word alarming. And I'll tell you what I find alarming, is this action in Netflix, down 24% on Friday after that company's disappointing quarter an outlook, down another 8% in the premarket. No buyers stepping up to buy Netflix shares after a 24% plunge on Friday. I think it says a lot about market sentiment right now into this Fed meeting.

JULIE HYMAN: Yeah, that stock is now down 39% year-to-date.