Dow Drops 200 Amid Global Jitters; Vix Soars
Stocks tumbled in another choppy session Friday, erasing their earlier rally as investors were quick to take profits following a stronger-than-expected government jobs report and amid ongoing jitters in the euro zone.
The Dow Jones Industrial Average slumped, led by BofA [BAC 8.06 -0.77 (-8.72%) ] and Caterpillar [CAT 86.7192 -2.8308 (-3.16%) ], after nose-diving more than 500 points—its worst one-day fall since Dec. 2008. The blue-chip index was up 171 points at its session high this morning.
The S&P 500 and Nasdaq also fell sharply.
In the previous session, all three major averages tumbled into negative territory for the year. In addition, all three indexes fell into "correction territory," defined by a drop of 10 percent from its peak from its intraday high in Apr. 29.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, surged almost 10 percent to trade above 34.
All key S&P sectors slid, led by... Click for Full Text!
