Market: Debt ceiling impasse weighs on major indices

Yahoo Finance Live's Julie Hyman checks out treasury markets, Nasdaq 100, and S&P 500 sectors.

Video transcript

- And we are watching a downdraft in equity markets. I want to start as I did yesterday, this time, with what's going on in the bond market. Because as we have talked about, there seems to be at least a temporary stalemate in the debt ceiling talks. And that means we have seen, especially the shorter term-- the shorter end of the curve, really see an increase.

Here's the 13 week T Bill. There is-- at least at the margins concern, will the US not be able to pay off some of its debts? And so we have seen these yields go higher. Interestingly, on the longer end of the curve, though, there is a little bit of relief today. I really call it little change, though at 3.95%, for example on the 30-year.

And then switch it on over and looking at some of the other areas that we are watching today. Here's the NASDAQ 100, which we tend to like to look. At this one stands out to me today. Tesla shares are down 3%. Not sure exactly what's going on there or what might be to blame. But interesting to see that action here today.

On a day when, yes overall, we are seeing some weakness within large cap tech, NVIDIA, which is out with its numbers, remember. After the close of trading down about 1.8% today, but it has been rallying or had been rallying into this before a little bit of a downdraft here.

And then let's look at sectors as well here to see what's moving in today's session? What's contributing the most to the selling pressure that we are seeing? Financials in last place here. And we have had some strategists say, listen, Look to the financials. Look to the banks. Those are going to be the ones that start to react when we do see more debt ceiling reaction in the markets. And there you have it. Industrials and materials also lower on the day, Diane.