12 month gains wiped out in 12 days; VIX soars 50%"Downgrade" was the word of the day on Wall Street today, as investors reacted to Standard & Poor's late-Friday revision to the U.S. credit rating. The major market indexes headed south right out of the gate, and selling pressure intensified as the session progressed -- despite President Obama's attempts to control the damage. "No matter what some agency may say, we've always been and always will be a triple-A country," Obama said, not long after the White House questioned S&P's math. As traders made a mad dash for the relative safety of gold, the Dow Jones Industrial Average (DJIA) steepened its triple-digit deficit to more than 630 points, while the CBOE Market Volatility Index (VIX - 48.00) -- also known as the market's "fear gauge" -- skyrocketed to its loftiest finish since March 2009.
The Dow Jones Industrial Average (DJIA – 10,809.85) swallowed its steepest loss since December 2008 today, giving up 634.8 points, or 5.6%, by the time the bell mercifully sounded. In fact, the blue-chip barometer ended south of the 11,000 level for the first time this calendar year, as not one of its 30 components eked out a win. Pacing the declining equities was Bank of America (BAC), which shed more than 20% amid reports of a legal battle with American International Group (AIG).Meanwhile, the S&P 500 Index (SPX – 1,119.46) fared even worse than the Dow, backpedaling 79.9 points, or 6.7%, to end at its lowest level since September 2010. In the same vein, the Nasdaq Composite (COMP – 2,357.69) took the hardest hit of the major market indexes, plunging 174.7 points, or 6.9%, to end at its own year-to-date nadir.
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