“U.S. stocks plunged on Friday, extending a recent rout, as concerns about slowing global growth continued to pressure investor sentiment,” Evelyn Cheng reports for CNBC. “‘Right now there is a feeling of fear in the marketplace and all news is interpreted negatively and it’s interpreted indiscriminately,’ said Tom Digenan, head of U.S. equities as UBS Global Asset Management.”
“The major averages accelerated selling in late morning trade to fall more than 1.5 percent, on track for their worst week since 2011,” Cheng reports. “‘I think uncertainty about China (and) general negativity is weighing on the market. There’s a lack of positive economic news to motivate buyers,’ said David Kelly, chief global strategist at JPMorgan Funds.”
“The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 23. The index is up more than 25 percent on the day and up more than 100 percent month-to-date for August, on track for its largest monthly gain since 1990,” Cheng reports. “JJ Kinahan, chief strategist at TD Ameritrade, said investors should start paying attention now that the VIX is above 20, and that anything over 25 indicates ‘true fear.'”
“The S&P 500 fell through support levels to below 2,000, off more than 6 percent from its 52-week high. The index is off more than 3 percent for the year so far. All 10 sectors of the index declined,” Cheng reports. “The Dow Jones industrial average briefly fell more than 300 points as nearly all blue chips declined. The Nasdaq Composite briefly lost more than 2 percent, with Apple declining more than 3 percent… The iPhone maker’s stock is approaching bear market territory.”
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MacDailyNews Take: Wall Street, meet the Red Sea.