S&P 500 Sees Biggest Drop in 3 Months After Plane Crash
The S&P 500 posted its biggest one-day percentage decline since April 10 as news of a Malaysian Airlines passenger jet crash near the Ukraine-Russia border sent shivers across markets.
Investors dumped riskier assets like stocks, while the CBOE Volatility index jumped 32.2 per cent, its biggest daily percentage gain since April 2013. It closed at 14.54, its highest level since April 15.
"I'm putting today into the 'noise' category for now," said Michael Mullaney, chief investment officer at Fiduciary Trust Co in Boston.
"We're absolutely trading on eggshells though," he said, noting that the market was "already ripe for a correction."
The iPath S&P 500 VIX ST Futures ETN jumped 9.8 per cent, with consolidated volume last at more than 77 million.
Nearly 300 people died in the crash, caused by a missile fired at the plane, according to a Ukrainian official. The incident follows an increase in tensions between Ukraine and Russia that has resulted in clashes along the border.
The NYSE Arca airline index fell 2.6 per cent with shares of most major US carriers down sharply. American Airlines lost 4.1 per cent.
The Market Vectors Russia exchange-traded fund fell 7.2 per cent, with consolidated volume last at roughly 25 million shares.
After the bell, share of Google rose 1.9 per cent following the release of its results and news that its chief business officer is leaving the company. Also after the close, shares of Advanced Micro Devices dropped 15.8 per cent following its results.
Declining issues outnumbered advancing ones on the NYSE by 2,476 to 563, for a 4.4-to-1 ratio on the upside. On the Nasdaq, decliners outpaced advancers by 2,171 to 518.
About 6.7 billion shares changing hands on US exchanges, above the 5.5 billion average for the month to date, according to data from BATS Global Markets.
The S&P 500 closed down 23.45 points, or 1.18 per cent.
The Nasdaq Comp was down 62.52 points, or 1.41 per cent.
Dow industrials were down 161.39 points, or 0.94 per cent.
The Russell 2000 was down 17.95 points, or 1.56 per cent.
The S&P MidCap fell 15.34 points, or 1.09 per cent.
The S&P SmallCap was off 8.67 points, or 1.31 per cent.
Copyright @ Thomson Reuters 2014
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