Stocks Plummet; Fear Index VIX Jumps 9%U.S. stocks plummeted at the opening bell today, as debt drama from across the pond fed the bears. Protests and pending austerity measures in Italy, as well as the Swiss central bank's newly capped currency exchange rate, were among the headlines weighing on Wall Street, which was still reeling from Friday's lackluster payrolls report. However, while an unexpected improvement in the Institute for Supply Management's (ISM) services index helped stocks pare their losses by the close, the Dow Jones Industrial Average (DJIA) still dropped triple digits for the third straight session. Furthermore, a widespread flight to safety helped gold futures tag a new record high north of $1,900 an ounce, and sent the CBOE Market Volatility Index (VIX - 37.00) -- also known as the market's "fear gauge" -- more than 9% higher by the bell.
The Dow Jones Industrial Average (DJIA – 11,139.30) fell as low as 10,932.53 before trimming its deficit to about 101 points, or 0.9%. Only three of the Dow's 30 components finished higher, with Pfizer's (PFE) 1% gain pacing the elite. Meanwhile, financial concerns Bank of America (BAC) and JPMorgan Chase (JPM) once again led the laggards, giving up 3.6% and 3.4%, respectively.
The S&P 500 Index (SPX – 1,165.24) also pared its losses as the session progressed, but still ended 8.7 points, or 0.7%, south of breakeven. Likewise, the Nasdaq Composite (COMP – 2,473.83) tagged an intraday nadir of 2,414.31, but trimmed its deficit to 6.5 points, or 0.3%, by the close.
HAPPY TRADING
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