Dow Jones Industrial Average Slumps 290 Points, Lands Back in Correction Territory

The Silver Lining to Today's Quadruple-Witching Walloping

by Karee Venema

Published on Sep 18, 2015 at 4:28 PM

The Dow Jones Industrial Average (DJIA) saw yesterday's Fed-induced slide and raised it. Specifically, the blue-chip barometer was down more than 300 points at its session low -- and closed back in correction territory -- amid growing anxiety over the state of the global economy. The fears -- which were fanned by the Fed's decision to not raise interest rates -- were felt across the board, with a number of sectors, including energy and financials, taking massive hits. The central bank will remain center stage next week, with Fed Chair Janet Yellen slated to take the mic, and the final reading on second-quarter gross domestic product (GDP) due.

Continue reading for more on today's market, including:

 

The Dow Jones Industrial Average (DJIA - 16,384.79) spent the entire session in the red, settling with a 290-point, or 1.7%, loss. All 30 Dow components closed lower, led by Merck & Co., Inc.'s (NYSE:MRK) 3.4% plunge. For the week, the DJIA gave back 0.3%.

It was a similar set-up for the S&P 500 Index (SPX - 1,958.08), which surrendered 32.1 points, or 1.6%, but found a foothold atop its 20-day moving average. The Nasdaq Composite (COMP - 4,827.23), meanwhile, fared the best of its peers, shedding 66.7 points, or 1.4%. Week-over-week, the SPX lost 0.2%, while the COMP added 0.1%.

The CBOE Volatility Index (VIX - 22.28) continued its streak of above-20 closes, tacking on 1.1 points, or 5.4%. On a weekly basis, however, the market's "fear gauge" gave back 4%.

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5 Items on Our Radar Today:

  1. Greece will hold elections over the weekend to vote on a new governing coalition. Alexis Tsipras -- leader of the Syriza party -- resigned as prime minister roughly one month ago, after securing a bailout with creditors. (Bloomberg)
  2. The Environmental Protection Agency (EPA) has ordered Volkswagon and Audi to recall roughly 500,000 diesel cars in the U.S., saying the companies cheated on clean air emission tests. (CNN Money)
  3. Are VIX bets too one-sided? Schaeffer's contributor Adam Warner investigates.
  4. Analysts are eyeing moves to uncharted territory for this outperforming semiconductor stock and healthcare name.
  5. How this round-up of restaurant names found their way into the limelight.

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Commodities:

 

Crude oil took a beating today, as fear over a global growth slowdown overshadowed a third straight weekly drop in U.S. rig counts. By the close, October-dated crude was down $2.22, or 4.7%, at $44.68 per barrel -- its loftiest one-day percentage drop in nearly three weeks. On a weekly basis, crude added a nickel.

Gold, meanwhile, enjoyed a lift today, as the Fed decision sent the dollar tumbling to a three-week low. At session's end, gold for December delivery was up $20.80, or 1.9%, at $1,137.80 per ounce -- its second-highest close of the month. Week-over-week, the malleable metal rallied 3.1%.


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