Dow opens lower by over 300 points, stocks eye rate outlook

The Dow Jones Industrial Average (^DJI) sinks by over 300 points at the get-go after Thursday's market open, the Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC) are also slipping lower.

The Morning Brief's Brad Smith and Seana Smith monitor the market action following the opening bell, including Treasury yield (^TYX, ^TNX, ^FVX) movements on the latest GDP (Gross Domestic Product) print. Yahoo Finance Senior Markets Reporter Jared Blikre compares the weekly average so far of the market indexes.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

Taking a look at the major averages out of the gate.

Right now, you're seeing the Dow down by about 1% S and P 500.

That's lower by about 3/10 of a percent.

And the NASDAQ composite.

That's down by about a quarter of a percent as well right now.

Just briefly, we wanted to check in on some of the Dow components because one of the major drags that you're gonna find there is no doubt CRM sales force.

And it looks like that is the biggest percentage decliner here for And it's not even close, uh, for the Dow as it's down and opens lower 18% after its earnings report yesterday, disappointing investors here.

So ultimately, uh, we'll see how that continues to weigh on the DJ I the Dow Jones industrial average here throughout the day.

Yeah, and that's why you're seeing the Dow off over 300 points right here at the Open.

And it's also important to take a look at some of the movement that we're seeing within the bond market here this morning.

Following that GDP plan, we are seeing Treasury prices move to the upside yield.

Moving a bit lower following that reading here.

A lot of this recalculation, just in terms of what exactly this means here for the Fed and the Fed's plans to potentially cut rates before the end of the year.

That's a conversation we will continue to have here on Yahoo Finance throughout this morning.

Let's get over to Jared Blier, who's standing by with a closer look at some of that movement that we're seeing here at the Open.

Jared Yes, Shana.

The woes for the Dow.

They continue today.

The Dow has just been under performing the general market and especially the NASDAQ.

So here we have the Dow down 300 points today, and I'm going to show you a four day chart.

So this is representative of this week.

It's down two point 4% Now.

Take a look at the NASDAQ.

NASDAQ is up 9/10 of a percent.

So what's going on?

Well, the Dow has a few components that are dragging on it more than others.

Uh, Boeing was a big drag last week, but we also saw weakness in McDonald's and some of the financials, so it's been kind of broad based within the Dow and I just want to show you, though not to be too negative what we have in the S and P 500.

Now guess what?

We're still up about 5% for the month, and Ryan Dietrich studied this, he said.

When the S and P 500 is up 5% in May.

June has been higher five out of six times in the past three times.

The rest of the year added at least double digits, so we might be in for a little bit of a pause here.

But nevertheless, we do have, uh, strength, probably as a tailwind.

Just want to show you the vics real quickly that is holding above 14 that's been elevated and then a little bit of a reprieve.

In the bond market today, you can see the tenure Tino yield down six basis points to 4.57% and I want to end here by showing some divergences that have appeared in the market.

This is software in purple versus socks, which is, uh, chip.

Stocks in Cyan and chip stocks have been flying recently, and software has simply been slumping, very reminiscent of the Dow industrials versus the transports.

Only a week ago,