Tech outperforms on Wall Street as Nvidia gains

Yahoo Finance markets reporter Jared Blikre breaks down tech stocks' performance. Blikre also gives an update on the bond market amid the tentative debt ceiling deal and the upcoming Fed meeting.

Video Transcript

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- Stocks are still mixed, with about 40 minutes to go until the closing bell. Yahoo Finance's Jared Blikre is on the floor of the New York Stock Exchange, with a closer look at some of these movers, Jared.

JARED BLIKRE: That's right. And another day, another green slash for the tech crowd here. I'm looking at the Wi-Fi interactive NASDAQ 100, showing mostly green here. Nvidia up another 3%, that is a $1 trillion story, or thereabouts.

But also taking a look at the sector action. Not surprisingly, tech in the forefront yet again. The trend this year, as we've been talking about, has been tech and the NASDAQ over the DAO, which is the exact opposite of last year.

I now want to take a look at the bond market, and we'll go back and hit some heat maps in a bit. But I want to focus on what's happening with the 10-year. Now we saw the yield a bit elevated, and this did spook the market a little bit, but not in a huge way. Now we're backing off some of these higher yields here.

What I want to show you, something I'm going to be watching like a hawk in the coming days, is the ICE BofA MOVE Index. So this is like the VIX of the bond market, and this is creeping up again. You can see we have a peak here from mid-march, that had to do with the banking crisis. And now we are breaking out of that. And if we were to surge higher, that could cause some consternation for stocks.

Now what could that be? What could that be caused by? Well, we've got the debt ceiling. Looks like that may be resolved without a hiccup. Even if it does, it has a long-term liquidity issues for the market. But just looking beyond that, we have the Federal Reserve meeting up in a couple of weeks, and some huge data points with respect to inflation.

So let me head down over to the NASDAQ and show-- I showed the mega caps just briefly here. And if we take a look inside at what's really surging, not surprisingly, it is the semiconductors right again, which has almost become synonymous with the AI trade. You back all of the AI stuff out of the market, hard to say what would happen, but this is definitely the pocket where the money is flowing right now.

So here, on our semiconductor screen, we have Nvidia up 3%, Intel up 3, and Qualcomm up another 5. In the coming days, guess what? We're going to be watching what happens with the bond market, what happens with some of the flows into these fringier parts of the market, and also with respect to, of course, the debt ceiling.

- All right, certainly something we are going to keep a track of. And it was a little bit surprising that didn't have more of an impact on the market, at least for now. Still some questions about what's going to happen. All right, Jared Blikre, thank you.