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Stocks resume sell-off, chip stocks weaken

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

Video transcript

BRAD SMITH: Welcome back to Yahoo Finance Live, everyone. We're 10 minutes into today's trading session on this Friday's eve of this Thursday. We're seeing major averages lower across the board for the Dow, the S&P 500, and the NASDAQ.

We've got some fresh commentary out from St. Louis, the Fed president, James Bullard, speaking during a virtual forum, saying that markets understood the message from the Fed's latest dot plot, and that shows the Fed expects more tightening this year. For more, let's get to Jared Blikre, who is in studio with us. Jared, what are we seeing so far--

JARED BLIKRE: Well--

BRAD SMITH: --in today's data?

JARED BLIKRE: --the Fed really means it, right, as we've been talking about here. All right, so another down day. And this precedes-- or this follows an up day in the markets that we saw Monday. Turned around Tuesday, turning around to the downside. Here is a two-day action in the NASDAQ. You can see we have now given it all back, plus a little bit. We are in the negative by about just a little bit, 12 basis points for the week.

As we were looking at the price action yesterday, a lot of it was facilitated by that big move by the Bank of England, kind of reversing policy. Going to buy bonds for a few weeks to support their markets and potentially their pension systems there. This is the S&P 500 over the last three months. Here's that big August rally that we have. It gave that back and more as well.

So could we be due for a bounce here? Very-- a lot of signs, a lot of signs that we could be. But I don't think this is the low just yet. I think Wall Street is kind of in agreement on that. So we'll have to see how all of this evolves. And everybody here knows I'm a big fan of the ICE B of A MOVE Index. This tracks the volatility of the bond market. We've been seeing a lot of bond market volatility recently. And this is a new postpandemic high.

And in fact, if we put five-year chart, actually, so this is almost tying the levels that we saw in the very depths at the very beginning of that pandemic selloff in 2020. Want to get a quick check of the US dollar because the weakness that we were seeing yesterday facilitated that big risk rally. And so that was a consequence of what was happening over there in the Bank of England.

You can see we are still within the range yesterday-- not a big movement, so hard to say. If we temporarily have a top in the dollar, which it's very overbought right now, we could have a reversal, which means to the upside, in risk markets. But we'll have to see if anything comes of that.

Here's the NASDAQ 100 today. Apple down 3%, Tesla down 3%. Some weakness in the chip stocks. I'm going to go to that board right now, where we can see Nvidia and ASML, Taiwan Semi, AMD, all down more than 3%. So just kind of adding to those substantial losses that we've seen for the month of September and closing the quarter as well, guys.

BRIAN SOZZI: Jared Blikre, thanks so much.