Fear grips Wall Street: Dow tumbles again

What is a stock market correction?

(CNN BUSINESS) This week’s wild see-saw ride for stocks looks like it will end on a down note. The Dow is tumbling once again as Wall Street returns to coronavirus fear-mode.

Stocks opened sharply lower on Friday but were off their lows by mid-morning. The Dow (INDU) was most recently down 500 points, or 1.9%. The S&P 500 (SPX) — the broadest measure of the stock market — was down 2.1%. The Nasdaq (COMP) dropped 2%. Thursday’s trading session was even more brutal.
All three indexes are in correction territory on Friday — that’s when the index falls 10% below its most recent peak. They first entered corrections last week and then bounced in and out during the following sessions.
As stocks tumbled, CNN Business’ Fear and Greed Index remained in “extreme fear” territory. The VIX volatility index (VIX) soared another 19% and earlier hit its highest level since exactly 11 years ago — March 6, 2009, the day the financial crisis bear market reached its nadir. The Dow briefly fell below 6,500 points that day. On Friday, the Dow opened just above 25,000 points.
Investors poured money into safe-haven assets: US Treasury bond buying skyrocketed, and the 10-year yield fell below 0.7% to a new record low. Gold prices rose 0.8% and pushing $1,700 an ounce. The Japanese yen strengthened once again, gaining nearly 1% against the dollar Friday.

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