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Nvidia and tech stocks weighed down by tensions with China, oil prices decline

Yahoo Finance Live's Rachelle Akuffo, Seana Smith, and Ines Ferre examine the headwinds facing tech stocks, the bond market, the U.S. dollar, and oil prices.

Video transcript


RACHELLE AKUFFO: Nvidia, I want to head to the YFi Interactive there. As you can see, a top trending ticker on Yahoo Finance. The chip maker at one point touching a 52-week low, still down about 8.78%. But if you look at where it was at the 52-week lows, it's a pretty dramatic change there, as you can see. It's still trying to find its feet.

And that's after its SEC filing said that the US government is restricting sales of its high performance A-100 and H-100 artificial intelligence chips that are used in service to China and Russia. Those concerns about this hampering operations still weighing on the stock, even though sources at Nvidia tell Yahoo Finance, the government will allow it to continue developing the H-100 and export the A-100 to support US customers through March.

And I want to take a look at the broader tech sector as well, because we did see Nvidia weighing on that. But it is making at least something of a comeback. But as you can see, Tesla being weighed down there by a half a percent. That's as we look at the electric vehicles.

I also want to take a look at what we're seeing in the NASDAQ 100 here. You see Apple under pressure here with the mega caps. You see Microsoft down more than 1%. Nvidia, as you see there, still in the dark there. And as you can see with AMD, out of the other chip makers, also under pressure by about 4%.

Let's take it over to Seana.

SEANA SMITH: All right, Rachelle, let's get up to speed here with the dollar, some of the movements that we are seeing more broadly speaking across the market. You mentioned the fact that we're seeing some of the major averages, the S&P and the NASDAQ, still in negative territory.

Well, we certainly have seen the dollar continuing to climb. And pulling up that chart. The US dollar index hitting the highest level that we've seen today in 20 years. Now, we are off the highs of the day, the high earlier was 109 and 98. And taking a look at the max chart here, certainly the highest level that we have seen in just a since the early 2000s. Again, the steady climb higher as the Fed pledges that it will stay aggressive here in order to try to rein in inflation.

Let's also kick it over to the bond market because the 10-year yield note, we have certainly seen yields continuing the march higher. We talked about the fact that we started the month of August right around 2.6. And we can see that steady climb up here on the chart. The 10-year note today at 3.26. The two year hitting the highest level that we've seen there since 2007. So certainly very important to keep a close eye on what's happening in the bond market.

Well, now, let's get you up to speed on some of the losses that we're seeing in energy today. Ines.

INES FERRÉ: Yeah, Seana, and just taking a look at the oil market. Coming off of a three month-- three straight months of losses for WTI, we're seeing WTI down more than 3%, settling earlier at $86.61 a barrel. Brent Crude is down as well today.

Of course, this is because of demand concerns, because of concerns about recessions, because of concerns also about China and the retightening of COVID policies in China. Some Asian factory activity slumped in August. And also, more talk of reviving the Iranian nuclear deal so that would put Iran's oil into the market, guys.