Wall Street's fear index topped 20 points. The stock market is selling off
Photo: X / NYSE
The VIX Volatility Index, also known as the "Wall Street Fear Index," surpassed the psychologically important 20-point mark during trading on June 9. A level above 20 indicates increased volatility in the market.
What's happening in the market
- As of 11:32 a.m. New York, the VIX index was adding more than 1.5 points to reach 20.6. The gain since the beginning of trading amounted to 8%.
- The main indices of the American market were falling at that time. The high-tech index Nasdaq Composite fell the most - by 1.7%. The broad market index S&P 500 was losing 1%, the blue chip index Dow Jones was losing 0.5%.
Among the leaders of the fall were shares of companies involved in the production of chips, notes WSJ. The PHLX Semiconductor Index fell 3.5%. Marvell Technology shares fell 9%, Micron - 4%, and Apple, Broadcom, Intel and AMD - 3% or more.
What's being said on Wall Street
The collapse in technology stocks last Friday, when the Nasdaq Composite plunged 4.2%, was a "worrying signal" for investors, said Wells Fargo strategist Osung Kwon and his colleagues in a note cited by Bloomberg. The recent euphoria that drove stocks higher appears to be over, Kwon wrote, noting that he is "not enthusiastic" about equities.
Bank of America analysts warned the day before that "too many red flags" are now flying over the U.S. stock market. Of the ten indicators that the bank uses to track signs of a "bear" market, seven were triggered in May. Among the alarming signals noted by Bank of America is a sharp increase in the yield gap between the best and worst stocks in the technology sector of the S&P 500. The difference reached a "whopping" 120 percentage points, the highest level since February 2000.
This article was AI-translated and verified by a human editor
