‘Fear index’ highest since 2020 as market panic reshapes political and policy outlook

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Stocks across the board were largely in the red. The tech-heavy Nasdaq plunged more than 1,000 points after open, the worst daily point loss in the history of the index, including intraday swings. The Dow Jones Industrial Average cratered about 1,200 points while the sell-off dragged the S&P 500 down by 4% right after open.and economy was also seen through the “fear index,” a nickname for the Chicago Board Options Exchange Volatility Index and better known as VIX.

Also on Monday, the Japanese stock market crashed and closed down more than 12% and notched its biggest daily point drop in history.U.S. West Texas Intermediate crude prices were up more than 1.2% on Monday while Brent crude oil, which is an international benchmark for oil prices, was down 1.3%. That is despite the upward price pressure from geopolitical uncertainty in the Middle East between Iran and Israel.

Voters have soured on the economy because of years of too-high inflation, but a couple of positive spots in the economy have been the strong labor market and the strong stock market. The rising unemployment rate shows the jobs market is softening, and if a stock selloff continues, it would jeopardize her chances in November.

 

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