Stocks Tumble While ‘Fear Index’ Surges

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Sep 4, 2020 at 5:30 AM EDT

Global stock markets posted heavy losses in US and Asia session trading with the Dow Jones 30 dropping more than 1,000 points and the S&P 500 index falling to its lowest level since June.

Global stock markets posted heavy losses in US and Asia session trading with the Dow Jones 30 dropping more than 1,000 points and the S&P 500 index (SPX) falling to its lowest level since June. Tech shares fell the most after a huge rotation from the sector which is currently showing some of the highest valuations ever with the Nasdaq 100 (NDX) falling nearly 5% in a day.

Stocks tumble while 'fear index' surges!

Shares in Apple (AAPL) were the worst affected of all the major FAANG stocks, dropping more than 8%. Since 23 March, the S&P 500 technology sector has surged around 70% higher leading to many experts warning of excessive valuations.

The CBOE Volatility Index (VIX), known as Wall Street's 'fear gauge', surged to its highest level since June.

While many analysts are warning of much more further downside in stock markets, many believe this is just a healthy correction. From a short-term perspective, all eyes will be on today's US Non-Farm Payroll news report at 1.30 pm BST where the market is expecting a fall in the unemployment rate.

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