Dow Frantically Searches for Silver Lining After China Shocks White House
The Dow slumped toward another triple-digit loss on Thursday amid fraught US-China tensions. | Source: AP. Image Edited by CCN
By CCN: The Dow and broader U.S. stock market frantically searched for a silver lining Thursday after China threatened harsh retaliation in response to a sizable tariff increase by the White House that could be implemented in the next 24 hours.
Dow, S&P 500 Extend Brutal Slide
All of Wall Street’s major indexes declined sharply through the morning session, reflecting a brutal pre-market for Dow futures. The Dow Jones Industrial Average fell by as much as 450 points before paring losses. It was last down 105.8 points, or 0.41%, at 25,861.53.
The broad S&P 500 Index of large-cap stocks declined 0.22% to 2,873.19. Most major sectors reported declines, with information technology companies shouldering the heaviest losses.
Meanwhile, the technology-focused Nasdaq Composite Index declined 0.35% to 7,915.41.
The CBOE Volatility Index, commonly known as the VIX, flashed a dire warning sign on the bull market Thursday. The so-called “fear index” surged more than 20% and peaked at 23.38, its highest since early January. It has since given back most of its gains and is trading in the low-19 region.
A VIX reading in the 20-25 range is consistent with the historical average. Anything above that paints an overwhelmingly bearish picture for stocks.
China Retaliates Against Trump Tariff Threat