Dow skids 600, worst day since credit crisis
The Dow closed down 634 points, the S&P 500 lost 79 points, and the Nasdaq ended 174 points lower. For every stock that rose at the New York Stock Exchange, more than 69 fell.
By JeeYeon Park, CNBC.comSkip to next paragraph
Subscribe Today to the Monitor
Stocks took a sharp nosedive in another choppy day Monday to finish at session lows as investors fled from risky assets following S&P's downgrade of U.S.'s credit rating last week in addition to ongoing economic jitters.
The Dow Jones Industrial Average plunged 634.76 points, or 5.55 percent, to finish at 10,809.85, well-below the psychologically-significant 11,000 mark. The move marks the blue-chip index's biggest point and percent drop since Dec. 1, 2008.
The S&P 500 plummeted 79.92 points, or 6.66 percent, to close at 1,119.46, its lowest close since Sept. 10, 2010.
Nasdaq sank 174.72 points, or 6.90 percent, to end at 2,357.69, its lowest close since October 4, 2010.
August is already on track to be the worst month for the S&P and Nasdaq since Oct. 2008.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, spiked above 40 to touch its highest level since Mar. 2009.
All 10 S&P sectors were lower, led by banks, energy and materials. Financials have plunged more than 20 percent this year.
“Once we took out Friday’s lows, it was like a trapdoor opened,” Art Cashin, director of floor operations at UBS Financial Services told CNBC. “This is very heavy volume again and that tells me that we’ve got people liquidating to raise cash.
S&P came in for significant criticism from U.S. Treasury Secretary Timothy Geithner, who said the rating agency showed "terrible judgment" in lowering the U.S. government’s credit rating.