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US stocks (^GSPC, ^IXIC, ^DJI) are jumping after a trade truce was reached between the US and China. Yahoo Finance Markets and Data Editor Jared Blikre breaks down sector and asset class moves, with tech and consumer discretionary leading sector gains and defensive plays lagging.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
US stocks surging this morning as the US and China strike a deal and a trade truce here. So, let's break down all of the names and asset classes getting a boost on the back of the big news and send it on over to Yahoo finances Jared Blickary for a look at what is moving. Hey Jared.
Thank you, Brad. The market action is dramatic. So let's let the picture paint a thousand words here. And first, we're going to start with the Dow futures, which is actually the laggard of the major indices. It's up only 1064 points. And if we take a look at the Nasdaq, that's one of the leaders here. That's up almost 4%. Let me just show you a quick chart here. This goes back to Sunday evening and you can see we gapped up, but then the real action took place right around the time Asia was closing, Europe was just getting its footing for the day. We saw another gap up there, and now we are holding on to these gains of 4%. Uh go to the S&P 500 futures, a little bit less than that. But the market's playing out in a very risk-on fashion. And as I've been kind of highlighting here, uh the market was kind of stuck in a prior resistance area. Now it is punching above that. So I'm not saying the all clear is sounding just yet, but we are very close to that point. Now let me show you some of the other market movements that I've been tracking here. Here is the VIX. Let me just put on the VIX since Sunday evening and you can see, we have now dropped back below 20. That was a sticking point. That's something that I've been harping on here. Very important that we get back into the teens there. That just signals that institutional risk aversion is a little bit less. There's not that need for hedging activity out 30 days and more. Here's a 10-year T-note yield. That is moving to the upside, up eight basis points. So is the US dollar, as you guys were just talking about. That's also moving up 1%. That's kind of a big move here. Some people might say, well, the dollar heading higher is a risk off move. What's more important to me is that rates and the dollar are back going in the same direction. This is what was happening pre-tariffs and we just got started uh kind of re-establishing that correlation late last week. This really cements it here. And we got to wait to the close here to see what's uh see what the end of the day brings, but I do have elevated hopes at this point. Here's gold futures, gold taking a humble down 3%, same with silver. But now let's get to some heat maps. And I think it's really instructive to see the sectors that are surging here. So let me just break this down. I have the pre-market quotes and the little rectangles in each of these boxes. Leading the way is XLY. That's up 5.39% in the pre-market. And then in the big box behind it, I have the totals since that low that we saw on April 8th. So XLY is up 15, 14.8% since then, up an additional 5% this morning. Then we have tech. Then we have energy. Then we have industrials, excuse me, then we have financials and materials. What is not working today? Healthcare. And that's on other news. But you'll also know that was, notice that that was also negative since that April 8th bottom. Also lagging is staples and utilities and real estate. So basically, the sectors that are not doing well are those that are typically more defensive and so that just speaks as to the bullishness of the moment here. I want to show you next the best and worst performers in the S&P 500 this morning. Uh these are the top 20. And again, I have the background, uh that is what's happened since April 8th, and then in these little boxes, we have what's happening pre-market. So Amazon leading the way, up 8.73% among some of these mega caps. Tesla also up 8%. You might remember these were two big stocks that did very well after the election, November of last year. If I sort by performance, we can see actually leading the way is uh SWK, that's Stanley Black & Decker, definitely not an AI name. Then we have GE Healthcare, then we have Best Buy. And so a lot of the retail names that have gotten battered down from the February highs, those are doing very well today. I want to leave us off on the Nasdaq 100, and we can just see everything's flying. Uh lots of green on the screen here. And if I take a look at the equal weight, we're going to see a lot of chip names at the top here along with some of the mega caps. So very risk on for a number of sectors, just not some of those defensive ones. And again, very nice to see historical correlations kind of reasserting.
