Post date: Aug 27, 2013 8:46:9 PM
Wall Street posts worst day since June on Syria concerns.
NEW YORK, NEW YORK, UNITED STATES (AUGUST 27, 2013) (NYSE) - Wall Street stocks suffered their worst day since June on Tuesday (August 27), slumping in a broad decline as geopolitical uncertainty rose over a possible U.S.-led military strike by the West against Syrian President Bashar al-Assad's forces.
The S&P 500 closed under its 100-day moving average for the first time since June 24, a sign of weak near-term momentum. The day's fall extended recent declines on uncertainty over when the U.S. Federal Reserve will start to slow its stimulative monetary policies.Odds grew that a strike would occur against al-Assad's forces for a chemical weapons attack against civilians as a number of nations and groups - including Britain, France, Canada and the Arab League - joined Washington in urging a firm response to Assad. Adding to the tension, Russia has supported Assad Syria's civil war.
Investor nervousness was reflected in a jump of more than 20 percent in the CBOE volatility index over the last two days. The uncertainty also lifted gold to a 15-week peak.
About 80 percent of companies traded on both the New York Stock Exchange and Nasdaq fell, while all 10 S&P 500 sectors ended down.
Financials and materials were the weakest of the day, with both falling about 2.5 percent. Both groups are closely tied to the pace of economic growth, as are energy shares. However, losses in that group were offset by a 2.8 percent rise in crude oil.
The Dow Jones industrial average was down 170.33 points, or 1.14 percent, at 14,776.13. The Standard & Poor's 500 Index was down 26.30 points, or 1.59 percent, at 1,630.48. The Nasdaq Composite Index was down 79.05 points, or 2.16 percent, at 3,578.52.
Tuesday marked the biggest daily decline for the S&P since June 20. The benchmark index is now down 2.9 percent in August, putting it on track for its worst month since May 2012.
Volume was light, with about 6.18 billion shares changing hands on the New YorkStock Exchange, the Nasdaq and NYSE MKT, below the daily average of about 6.31 billion shares so far this year.