Seems like the Santa Claus rally that was leading the charge at the end of 2023 has ended. Markets closed in the red on Wednesday with the once skyrocketing tech sector (XLK) down 0.32%. Ten-year Treasury bond yields (^TNX) have begun rise, putting even more pressure on stocks. Yahoo Finance's Jared Blikre joins the Live show to break down the recent developments with the market and what it could mean going forward.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

JARED BLIKRE: Yes, I think first and foremost, I've got to recap what happened yesterday at the close. That was the end of the Santa Claus rally-- a seven-day period, five days from the last year. The first two of this year, trading days only. And that ended in the red. And so when we compare that to the returns at the end of January, if January is ending red too, along with one indicator, well that portends potential weakness into the end of the year and. I realize we're only three days into the new year in terms of trading.

But I want to check in on the 10-year T note yield. We have seen yields under-- yields actually popping the last few days, and this has put stocks under pressure. You can see, here's a three-month chart, and we are coming off of the lows that we saw in late December. And another thing I've been looking at is the strengthening US dollar. It's down just marginally today, but that's after two strong days of strengthening. Another headwind against a lot of the growth stocks that have seen that have come in favor over the last year.

Now, here is a five-day look at the sector action. We can see utilities and health care. Those are the two leading. That is defensive. And let's dial it down to see what's happening intraday today. Energy is in the forefront. That's up 1%, followed by financials and industrials, then health care. So it looks like the value and cyclical sectors doing best today.

What is not doing well? Tech. That is down. XLK down one-third of a percent. Consumer discretionary, that's retail, also down about one quarter of a percent. And, of course, we want to check in on the NASDAQ 100. I was reviewing that downgrade by Piper on Apple just a few minutes ago. Apple down another 1%.

And let's just take a look at a 10-day chart. You can see it's been down about 7%. And if I broaden this out to a one year, you can see this pattern I was noting just a few minutes ago-- the potential double top here. So we'll have to see how this plays out. But Apple, a huge bellwether again for the market.