Yahoo Finance reporter Alexandra Canal joins Market Domination Overtime to break down Tuesday's top market takeaways.

Markets are still closely watching the Fed and the path of potential interest rate cuts. Hotter than expected manufacturing data, coupled with January and February's sticky inflation, stocked concerns that rate cuts may not arrive as quickly as anticipated.

Tesla (TSLA) once sat on high alongside major tech players like Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG,GOOGL), but may be at risk of losing its status due to slowing demand and production and growth concerns.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

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

Video Transcript

JULIE HYMAN: All right, stocks closing with steep declines. But off the lows of the day, Alexandra Canal here with a look at some of the key themes from today's action. So, Ale, where do you want to start?

ALEXANDRA CANAL: Yes. Well, one thing that stuck out to me is that markets still care about the Fed and the path of potential interest rate cuts. It doesn't matter how strong the economy may be. They want to know how many cuts we can expect, and more importantly, when we can start to expect those cuts.

And we saw a lot of fear today after that hotter than expected manufacturing data coupled with the stickier inflation that we saw for the month of January and February. That really stoked concerns that.

Perhaps we might not get a rate cut as quickly as we had anticipated. And that's part of the reason why we saw some of these steep declines in the three majors. Treasury yields rising, the 10-year by the way, hitting its highest levels since November.

We were as high as 4.4% earlier in the session. Now hovering in a range of 3.36%. But Morgan Stanley flagged that anything above 4.35 was a technical level to watch as that's something that could potentially lead to more dispersion in the market when we think about interest rate sensitive areas of the market.

You can take a look at small caps today. The Russell 2000 closing down more than 2%. Real estate financials also lagged pretty heavily.

And then I also want to bring up the VIX, otherwise known as the volatility index, the fear index. That saw its biggest jump in six weeks today after it jumped as much as 13% to trade near 15.4. That's the highest level since February.

So really a lot of concerns here I think from markets when we think about the path to interest rate cuts. That being said, we did hear from several Fed officials today that said three rate cuts, reasonable. I think that's why we're closing off of the lows that we saw earlier today. But still something to keep an eye on.

JULIE HYMAN: I mean, maybe I'm old-fashioned. But until the VIX gets, don't call me until the VIX gets to like 1920.

ALEXANDRA CANAL: I know.

JULIE HYMAN: You know what I mean? I mean, yes, it's the biggest one it's had in a while. But like in real crisis times, it really gets up there.

ALEXANDRA CANAL: A really strong first quarter, too.

JOSH LIPTON: Well, that was Bill Baruch just told us. This is nothing but a breather in his opinion at this point. I mean, we did have that steady grind. I don't know how many months it's been since you even saw like a 2% pullback.

JULIE HYMAN: It's been a while a while.

ALEXANDRA CANAL: Yeah, and like I said, the first quarter we saw a lot of strength in markets across the board. I mean, record highs, it felt like every day we were hitting a new record high from one of the major indexes. So the fact that we're starting off a bit Rocky in Q2, I don't think is super surprising. But just something to keep an eye on as we continue.

JULIE HYMAN: Let's talk about Tesla for a second. Down 5% when all was said and done today on those disappointing delivery numbers. And a lot of investors just don't want to wait for things to turn.

ALEXANDRA CANAL: Yeah, and you know, Tesla, it's a big name. We constantly talk about it on this show. It's part of the Magnificent Seven.

We know Apple is another one of those Mag Seven stocks that has struggled. But it seems like Tesla, it's hit after hit with them. We just can't seem to catch a break.

And even some of the biggest Tesla Bulls on Wall Street came out today and said, look, this is not good that we saw these delivery numbers. Dan Ives from Wedbush, he called this a seminal moment. And that darker days are ahead if Tesla and Elon Musk can't turn this company around.

JOSH LIPTON: He kept his outperform.

ALEXANDRA CANAL: He did keep his outperform. He's like you got to keep your eye on the longer-term outlook here. But this is also coming as the EV market at large has slowed.

There's other things that are happening that are really out of these companies control. If you think about infrastructure, that is something that I think is going to be a big headwind moving forward. Do we have enough chargers?

There's range anxiety. If you even think about the pricing of some of these cars. The average American consumer in these times high inflation, they don't want to pay for that. So there's all these obstacles that are in the way of a lot of these companies.

So, Tesla, I think, we've been hearing for some time that it could get the boot from the Mag Seven. And I just think that the stock price right now down more than 30% year to date, 20% year-over-year. Investors don't seem that confident in this company.

JULIE HYMAN: The Mag Seven is dead. I'm done with the Mag Sevem.

JOSH LIPTON: What about the Fab Four?

JULIE HYMAN: No, none of it.

ALEXANDRA CANAL: Jinx.

JOSH LIPTON: The dynamic duo?

JULIE HYMAN: Just stocks.

JOSH LIPTON: The three AI amigos?

JULIE HYMAN: I think we should like put a little pin in the whole thing for a little while.

ALEXANDRA CANAL: I support that, Julie. I support it.

JULIE HYMAN: All right. Thanks, Ale.