Growing recession fears sparked heavy selling in stocks today. Traders responded to an inverted yield curve on top of ugly economic data out of China and Germany, sending the Dow to a monstrous 800-point loss. President Donald Trump weighed in on Twitter, calling Fed Chair Jerome Powell "clueless" and saying the Fed raised rates "too much & too fast." The percentage losses were about the same for the S&P 500 and Nasdaq, with bank and tech stocks some of the hardest hit. Meanwhile, gold prices popped and the VIX jumped back above the 20 handle.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 25,479.42) fell 800.5 points, or 3.1%, for its biggest pullback since December. All 30 of the index's components closed in the red, with Dow's ( DOW ) 5.9% loss coming in as the steepest.
The S&P 500 Index (SPX - 2,840.60) lost 85.7 points, or 2.9%, and the Nasdaq Composite (IXIC - 7,773.94) shed 242.4 points, or 3%.
The Cboe Volatility Index (VIX - 22.10) jumped 4.6 points, or 26.1%.
5 Items on our Radar Today
- A new report from Reuters says that China has drastically cut back on gold imports in recent months. The move is meant to slow the outflow of dollars to boost the yuan. ( Reuters )
- On a lighter note, Dunkin' Brands ( DNKN ) is bringing back its pumpkin spice flavors on Aug. 21. While it feels early, the fan favorite item often marks the unofficial start of fall. We'll have to wait and see when Starbucks' ( SBUX ) own pumpkin spice drinks will return. ( USA Today )
- New "buy" rating fails to lift WWE shares.
- A pharma stock that could be due for another big move .
- Why a top- and bottom-line beat wasn't enough for GOOS traders.
Data courtesy of Trade-Alert
Gold Prices Gain Again as Fear Rises
Oil prices got hit today, too, mostly due to growing fears around global demand. September crude futures fell $1.87, or 3.3%, to $55.23 per barrel.
Gold prices had another strong session on the economic worries. December-dated gold futures rose $13.70, or 0.9%, to finish at $1,527.80 an ounce -- a fresh six-year high.