The Dow and broader U.S. stock market plunged anew on Thursday after the European Central Bank (ECB) launched fresh stimulus measures to combat a slowing regional economy. The shocking announcement brought recession fears back to the fore as investors continue to navigate a synchronized slowdown in global growth.
DOW PLUNGES; S&P 500, NASDAQ FOLLOW
All of Wall Street’s major indexes declined sharply through the mid-morning, reflecting a volatile pre-market session for U.S. stock futures. The Dow Jones Industrial Average was bracing for its fourth consecutive drop. As of 12:59 pm ET, the Dow was down 136.4 points or 0.53% to 25,537.06. The index was down more than 300 points earlier.
The Dow crashed by as much as 300 points before grinding into recovery mode. | Source: Yahoo Finance
Twenty-four of 30 Dow members recorded declines, with three declining by more than 0.55%.
The broad S&P 500 Index fell 0.44% to 2,759.27. Nine of 11 primary sectors recorded losses, with financials falling 0.92% to lead the decline. Shares of materials fell 0.85% on average. Discretionary shares were off by 0.82%. Utilities and real estate were the lone bright spots, gaining 0.45% and 0.73%.
The technology-focused Nasdaq Composite Index declined 0.49% to 7,469.10.
A measure of implied volatility known as the CBOE VIX is on track to settle at five-week highs. The so-called “fear index” peaked at 17.81 on a scale of 1-100 where 20 represents the historic average. VIX is currently valued at 15.94, having gained 1.27%.
