Wall Street’s ‘fear gauge’ surges as Nasdaq heads for worst day since June

0
11

The CBOE Volatility Index, otherwise known as the VIX, or Wall Street’s “fear gauge”, surged Tuesday morning as U.S. stocks plunged in the wake of a “game-changing” August inflation report. The VIX, which is derived from movements in near-dated S&P 500 options, was up nearly 9% on the session at 26 VIX, +8.42% as U.S. stocks headed for their worst session in at least three weeks. The S&P 500 was off 126 points, or 3.1%, to trade at 3,982, as gauge was headed for its worst session since Aug. 26. The Dow Jones Industrial Average was off 860 points, or 2.7%, to 31,521. The Nasdaq Composite was off 493 points, or 4%, at 11,774, as the tech-heavy index headed for its worst day since mid-June, when markets were trading their lowest levels since late 2020. All 11 S&P 500 sectors were in the red, as were all 30 stocks on the Dow. The worst-performing sectors were communication services, consumer discretionary and information technology, all of which are heavily exposed to megacap tech stocks like Amazon.com Inc. AMZN, -5.30%, Meta Platforms Inc. META, -7.43%, Alphabet Inc. GOOG, -4.59%, Apple Inc. AAPL, -4.26% and Microsoft Inc. MSFT, -4.10%. Unprofitable tech stocks like those owned by the ARK Innovation exchange-traded fund ARKK, -6.30% were in even worse shape, with that index down nearly 7% in what’s shaping up to be its worst day since mid-June.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleMarket Extra: Here’s where ETF investors plan to put money to work in coming year – and how their generational attitudes shake out, Schwab study finds
Next articleBoeing, Intel and Nike are sharpest Dow decliners as index sheds 850 points

LEAVE A REPLY

Please enter your comment!
Please enter your name here