Market sell-off continues, Dow faces worst week since 2020

Yahoo Finance's Jared Blikre joins the Live show to discuss the state of the market sell-offs heading into the week's final trading hour, volatility levels, and losses by Nasdaq leaders.

Video transcript

RACHELLE AKUFFO: And obviously, the week can't end fast enough for the stock markets. Let's take a look at what we're watching. The stocks continue their sharp decline towards a weekly losing streak last seen in 2001. Between stubbornly high inflation, mega-cap declines, the retail wreck, and recession fears, should you be buying the dip, holding your cash, or trying a new strategy altogether? Our markets guests help us digest this volatile week.

And global stocks lost an estimated $11 trillion so far this year. Investors are looking for safe havens as people are watching their 401(k)s tumble, while inflation drives up everyday expenses and eats into savings. Now that stress is taking a toll on our mental health. We'll have expert insight from a financial therapist on the ways to manage.

Plus, if you're trying to get away this summer, find out why some airline experts are bracing for a summer of chaos, as demand rebounds faster than expected. Tips on what to expect, best places to go, and how to get the most bang for your buck this year. I'm Rachelle Akuffo, along with Dave Briggs and Seana Smith.

SEANA SMITH: Rachelle, let's kick things off here with the markets. You mentioned the wild week that we have seen. The S&P now in bear market territory, another day of declines, with the Dow off just around 361 points. Kicking things off here, Jared Blikre. And Jared, what can you tell us? Because things certainly do not look good.

JARED BLIKRE: That's right, and it's really all about the mega caps here. Let me go to the S&P 500, the kahuna. That is down 1 and 1/2% today. This is over the last five days. This is down 4 and 1/2%. And we're talking about what's driving the market lower? Well, it's the mega-caps. As I've been saying throughout the day, the week, the soldiers have already fallen. Those would be the ARKK components, the software stocks, everything that got decimated over the last year. And now it's the generals.

So let's take a look inside the market. This is our global indices. I made a heat map out of all the indices in the world. What do you notice about this? This is five days. Almost everything else is green, except for this bottom row here. So we see the NASDAQ down the most, and then you get into the Russell 2000. But other than that, we're not looking at a lot of losses. So this kind of supports my theory that it's really the mega caps that are capitulating right now.

And let me get to the NASDAQ 100, where you can see some of the carnage. And again, this is a five-day look. So if you add up Apple, this has lost $220 billion this week alone. You add that to Alphabet and Tesla, you get a cool half a trillion dollars in losses. So the big question is, where is the market bottom? Well, we just took out the lows. And so maybe we get that flashy bear market rally that everybody's been talking about, including me. But we do have to prepare for more potential carnage.

And I've said before, when the market crashes on Friday afternoon, that is a bad sign. That's not supposed to happen. And it portends potential selling in the coming week. And my biggest concern right now is what's going to go on with the hedge funds. Because we know that Melvin Capital shuttered its doors this week. And after these continuing losses, we might see some more, have some more announcements after a weekend of pontificating. I wouldn't be surprised to see some more funds closing their doors.

Let's go to the VIX. I want to check that out before we go away. That's still elevated, above 30. Taking a look at the 10-year T-note yield, that is off a little bit, but still in the high end of its range. So we're really not getting a lot of signals here or a lot of clarity. We just have to be a bit defensive.

DAVE BRIGGS: Boy, is it ugly out there. Jared, thank you, my friend. Appreciate it, as always.