Stocks Fall 1%, All S&P Sectors Lower; VIX SoarsSubmitted by emalvini on Mon, 07/23/2012 - 12:24
Stocks Fall 1%, All S&P Sectors Lower; VIX Soars
Published: Monday, 23 Jul 2012 | 11:56 AM ET
By: JeeYeon Park
Stocks recovered from session lows but were still down sharply across the board Monday, fueled by fears that Spain will need a full sovereign bailout and mounting worries that Greece may leave the euro.
The Dow Jones Industrial Average eased off its worst level, led by McDonald's [MCD 88.75 -2.83 (-3.09%) ] and Microsoft [MSFT 29.115 -1.00 (-3.32%) ]. The blue-chip index was down almost 240 points at session low. Caterpillar [CAT 81.34 0.39 (+0.48%) ] led the few Dow gainers.
The S&P 500 and the Nasdaq also remained under pressure. The CBOE Volatility Index, widely considered the best gauge of fear in the market, surged almost 25 percent to trade near 20.
All 10 S&P sectors were firmly in negative territory, led by techs and materials.
The Dow, S&P 500 and Nasdaq are now lower for the month of July. (Read More: Busch—Navigating Your Way Through an Ugly Week)
“What remains unambiguous is the fact that we don’t have a concrete solution by European officials as to how they are going to solve for this,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott on CNBC’s “Squawk on the Street.” “So the concern today is not just Spanish banks but talks of the European issues related to policymakers not coming together to form any kind of solution to solve for what is potentially a solvency issue for Spain.”