Fear has overtaken U.S. markets. Crude oil and China remain the major culprits. The Dow plunged 500 points on Friday afternoon, leaving it on track for the worst day since the late August market freakout. The S&P 500 fell 3.3%, while the Nasdaq lost 4%. The wave of selling dashes hopes that recent signs of stability in the market signified Wall Street’s panic attack was over.
On Thursday, the Dow jumped 228 points, its best day since early December. “The sentiment is dominated by fear. Ahead of a long weekend, no one wants to be exposed,” said Sam Stovall, managing director of U.S. equity strategy at S&P Capital IQ. Stocks are now flirting with critical levels. The S&P 500 broke below the 1,867.01 level it plummeted to during the market mayhem last August. The Nasdaq is also now on pace to close at the lowest level since October 2014. FULL REPORT