Stocks reverse gains ahead of Fed meeting

Yahoo Finance Live’s Julie Hyman breaks down how stocks are moving ahead of the Fed’s FOMC meeting, plus the best performers year-to-date.

Video transcript

[AUDIO LOGO]

- Even though the session is just a little over an hour old, we have seen a lot of movement already, with the NASDAQ kind of making a feint to the upside here before coming back down. And it's now at the lows of the session, down about 1.7%. We have seen similar action for the S&P 500, which is now down almost 9/10 of 1%. The Dow was actually in the green for a little while, and now it's going back lower, as well.

Let's take a look at the components here and see what is going on when we take a look in the S&P, in particular. Some of the groups that we earlier talked about is the best performers on the year are now rolling over. So we have seen big increases in the XLK. That is the information technology index. Communication services is the best performer on the year, so it's down 1 and 1/2% today. And then consumer discretionary is also taking a hit today.

Something else I wanted to highlight is what we are seeing in the China ADRs that trade here in the United States. Alibaba leading the declines there, down by 5.6%. And you see a good amount of dark red on the screen. Pinduoduo down 7%. JD.com down 5 and 1/2%.

There doesn't seem to be really a specific catalyst necessarily here with what we are watching, but many of these stocks have had a big year thus far, so it could just be some selling after the big gains we've seen. Alibaba, for example, up 26%, Pinduoduo up 19%, JD up 7%, so now seeing a reversal of some of those gains. Similar phenomenon, kind of the back and forth that we are seeing with Bitcoin, which is up 39% year to date. And then if you go back to the intraday, we are seeing a pullback here.

So sort of to the upside and to the downside here, we are seeing some reversals in today's session.