matt: joining us now is katie greifeld as well as betsey stevenson, professor of public policy and economicst the university of michigan, also a bloomberg columnist. katie, let me start with you and ask you about the insane swings we have seen yesterday. bespoke was telling us only the sixth time on record since 1980 that we have seen a decline of more than 4% and then finishing in a recovery. katie: those numbers are pretty staggering. history is not on our side here. also if you look at one month out from those six declines we have had, the median decline was about 5.5%. three month out it even worse. the median decline was 7.9%. we will see if history holds this time but not a great track record. you are definitely seeing some of that anxiety play out today. matt: let's get to betsey and ask what is causing this. we have been expecting the fed to raise rates for some week because of the rising inflation numbers. the market was predicting two, dots said three, goldman sachs said four, now some are saying more. why are we seeing markets in no way freak out as this two day meeting kicks off?

katie greifeld is with us for more on the mood of the markets. been hearing from people you are talking to? katie: yesterday you saw the fastest rebound intraday since march 2020, going from a 2.7% drawdown back to unchanged. you are seeing that follow-through today. the nasdaq up about 1.2% at the moment. it helps that you have some soothing words from jerome powell that the fed will control inflation without hindering the job market recovery. we have a big test tomorrow with wednesday's cpi report. i was talking to an analyst yesterday about the rebound we are seeing. he says tech is held hostage to bonds tomorrow. it will take a big miss in the cpi report to see that tech trade get some legs again. it has like today but cannot wait to see what happens tomorrow. matt: in terms of tech stocks we have seen bouncing around, we see real volatility. we have seen this before. faith seems to have been lost, by the dip comes back, and then we hit new records like we did at the end of last year, beginning of this year. what do investors need to see? kati

let's dig into markets and rates with cross asset reporter katie greifeld.ho would have thought, as we look at four, maybe five rate rises, as we talk about the possibility of 50 basis points in one hike for the first time in 2000, that we would see such a demand for debt? katie: this is why i want to talk about this option. usually not too much to say, but two days before the fed, such strong demand, i think that tells you that maybe we are starting to see some dip buying in bonds. you can see that in the price action. to see this really strong demand in the primary market two days before the fed is expected to provide some clarity on their plans, there has been a lot of chatter about maybe 50 basis points, may be a hike at every single meeting. this shows there has been a lot already priced into the market. maybe it has gone too far. matt: how much of this is safe haven seeking? you had the geopolitical news with russia and ukraine getting or serious this morning. gold buying at 1841. the bloomberg dollar index rising. is that happening today? katie: i thi

thank you, katie greifeld.eanwhile, we will be digging more into the earnings impact, microsoft earnings, digging into the tech sector selloff. romaine: are we going ot head -- to head there? caroline: i hope. this is bloomberg. ♪ romaine: today's will take, looking at wild swings in the equity markets. the tech sector receiving the most selling pressure and now you're looking at the nasdaq futures, down about 3.8% after we got micro soft earnings and earnings of a couple of other companies in the tech space, putting downward pressure on the markets. jeremy brian, a portfolio manager at gradient investments. we appreciate you being with us. i want to start broader here. we got microsoft. there is no way to parse that, it is a beat. but expectations in this market appear to be disconnected from maybe where we were a few months ago. >> yeah. there seems to be natural selling pressure. i don't know how you get around that. they have slow down a little, but 46% year-over-year, many people would complain about that

the one signal stocks may be near the bottom here -- joining us what that story is katie greifeld.hat is it? kriti: the story is all about the options market and volatility market. we are looking at the vix. about 27% higher. >> not in the 30's yet. >> but the direction of travel is definitely higher, looks like it spiked. the vix tracked a one month contract, if you look at remote futures, the one month contract is higher right now. what that tells you is it is more expensive to buy near-term protection right now than it is further up the crib. that sounds about. but we have only seen this inversion happened about four other times in the past year. and each time, it's coincided with the market bottom. the fact that people are so nervous right now, maybe it is actually good news. we do have a lot of earnings to get through. still potentials, right at the end of the tunnel. >> was there anything you were hearing from the experts just this week? i want to go back to basically late november. as things continued. selling create even more volatility, when you don't see what matt was all

let's dig into the details with bloomberg's katie gry felt -- katie greifeld. e: if we look at the arc innovation etf, it is down over 7% so far just in the first five trading days of this year. if you look at the other side of the trade, the total capital short innovation etf, that tracks the inverse performance of ark. it is up over 9.5%. arc innovation down by over 9%. it is really interesting, what this means for the flows. you can see the investors who poured billions of dollars into that fund in 2021 hung tough for a while, but now you're starting to see some outflows. the last seven months has seen investors pull cash, and the fund is on track for a second straight week of outflows so far this week. that cash is finally starting to come out as you see the etf's start to hit its lowest levels since about september 2022. it really comes as no surprise when you look at some of its top holdings. you can see really a lot of tech names, and roku in particular, the third biggest holding in the fund, is down about 19% just this week alone. alix: it has been a pre