Stocks in the red, gold climbs as bitcoin diverges

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

Video Transcript

BRAD SMITH: For more on today’s market activity and what’s taking place early in today’s tape, we’ve got Yahoo Finance’s Jared Blikre standing by.

JARED BLIKRE: Yes, it looks like a little bit of spillover from yesterday’s crypto wipeout, was that the cause? Too hard to say or it’s a little bit too early to say. We have the NASDAQ down about 1%, S&P 500 down a little bit less. So is the Dow. And I want to get to the sector action today. Not a whole lot of big movement, but we are seeing utilities trying to flirt with the green here. Everything else mired in the red. We’re going to get to commodities in a second. Energy down 2%. Tech, financials, those are the big underperformers here.

And let’s take a look at some of our market leaders and sentiment leaders. Solar energy– that is green, as are Korean stocks and IPOs, but everything else mired in the red. KWEB is that Chinese internet ETF. That is suffering a loss of 4 and 1/2%, followed by the Semiconductor Index here, centered in Philadelphia, by the way. That’s down 2 and 1/2%, and ARK, that’s down 2 and 1/2% as well.

Let’s take a look at some meme stocks. Not a lot happening on the fringe, mostly red, but Coinbase with that crypto wipeout yesterday, that is down 5%. Robinhood also affected. That’s down 5%. Some other stocks that we take stock of on this board, AMC, that’s down almost about 5% as well. Now, let me show you what’s happening in the futures. Natural gas is down 4%, but I wanted to focus on crude oil and also gold. Crude oil down about 1 and 1/2%. We’ve been flirting with $90 for some time.

Here’s a look at the five-day price action, backing off some of those highs. But you want to know something interesting here? We have seen gold kind of perk up recently. Here, you can see it’s about breakeven on the day, but it did have that breakout yesterday. Let me just show you a three-month chart, and you can see we have been rocketing higher over the past few days.

However, I did this. I wanted to compare the price of gold to Bitcoin. And it doesn’t look very compelling. Here’s a three-month look, and you can see gold rather steady netty here. It’s down about 4 and 1/2%. Bitcoin, I’m using the ETF as a proxy. Grayscale, one that is down 26%. So you can see them diverging there. And over the last three days, you’re going to see how gold, I said it rocketed up– well, compared to the losses in Bitcoin, it’s just kind of holding steady there. But I think investors in the yellow metal, where did it go? It’s right there, coming back, guys. Gold– who thought?

BRIAN SOZZI: Not coming back yet? Cryptocurrencies. So we’ll continue to watch that space. Jared Blikre, thanks so much.

JARED BLIKRE: You bet.

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