Stocks rise, oil steadies, BlackRock cuts rating on China assets

Yahoo Finance's Ines Ferré breaks down how stocks and energy markets are moving on Tuesday as well as BlackRock cutting its somewhat bullish stance on China stocks and bonds.

Video transcript

BRIAN SOZZI: Now let's get over to our very own Yahoo Finance's Ines Ferre over at the YFi Interactive. Ines.

INES FERRE: Hey, Brian, and taking a look right now at the markets, we are seeing the NASDAQ up above 2% right now. It had dipped a little bit. It's back up. The S&P 500 at around 1 and 1/2% higher, looking at the oil space, we are watching oil. It was steadying a bit. Right now, we're seeing WTI declining 3/10 of a percent. Brent crude also a little bit lower. Second day in a row, though, that oil is down. And yesterday, we saw a big fall for oil prices, down about 6%, its worst daily performance since March.

Looking at the sector action, energy stocks regaining a bit of what they lost yesterday, but not all. Also technology stocks in the green. And over on the NASDAQ 100, quite a bit of green on the left hand side of the screen. You're watching Amazon up more than 3%, Tesla up 4%. Nvidia up more than 6% right now. Nvidia yesterday was down 9%. So we are definitely seeing a rebound in these tech names. They are not gaining all of the losses from yesterday. But hey, the day is young.

JULIE HYMAN: It is young, although something tells me we would need more than a day perhaps or more than today.

INES FERRE: We sure do.

JULIE HYMAN: There was an interesting call that caught my eye this morning. And that is BlackRock finally giving up its modestly bullish stance on China, which is interesting after all this time.

INES FERRE: Yeah, that's right because BlackRock has been one of China's biggest bulls. And BlackRock citing two reasons why it's lowering its ratings on Chinese stocks and bonds, one of them being the lockdowns in China, which, by the way, have now been going on for more than 40 days. And no one's really sure for certain when they're going to end and the impact that those lockdowns are going to have on China's growth.

The other reason being geopolitical concerns because of Beijing's relationship with Russia. Now take a look today. We're seeing these Chinese ADRs that are seeing gains. If we pull a year to date chart, you will see that they are underwater year to date. What's been interesting is the whole trajectory of these Chinese ADRs because we had seen a big pullback because of the regulatory crackdowns in China.

And then the Chinese government earlier this year came out and said, well, we're going to support the markets, kind of easing off of these crackdowns. But then, you had the lockdowns. And so that has put further pressure on these stocks. A one-month chart, you can see some of these names down double digit percentages. Year to date, definitely underwater. And if we pull a one-year chart, we are seeing BABA down 60% over the last year. In fact, today it's trading at around 85-- $86 a share, guys.

BRAD SMITH: Wow. All right, continuing to keep tabs on all of those and much more. Ines Ferre, Yahoo Finance's own, thanks for breaking that down for us here today.