Dow Falls 208 Points on China Slowdown Fears
CAT and NVDA blamed slowing China demand for their weak forecasts
Stocks dropped out of the gate, on dismal guidance from construction heavyweight Caterpillar (CAT) and chipmaker Nvidia (NVDA), with both citing weak demand out of China. Sinking oil prices and reports of massive lost revenue for the U.S. because of the government shutdown only added to the risk-off backdrop. At the close, the Dow, S&P 500, and Nasdaq were all in the red, and a key VIX moving average edged higher.
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The S&P 500 Index (SPX - 2,643.85) closed down 20.9 points, or 0.8%, while the Nasdaq Composite (IXIC - 7,085.69) gave back 79.2 points, or 1.1%.
The Cboe Volatility Index (VIX - 18.87) topped 20 in intraday action, before settling with a slimmer 1.5-point, or 8.3%, gain.
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Data courtesy of Trade-Alert
Gold Gains on Dovish Fed Expectations
Oil prices plunged today as Caterpillar's weak forecast and dismal industrial profit data out of China stoked fears of a slowing global economy. Crude for March delivery dropped $1.70, or 3.2%, to settle at $51.99 per barrel.
Sinking stocks boosted gold's safe-haven appeal, while low expectations of a Fed rate hike only strengthened tailwinds. February-dated gold -- the most active contract today -- jumped $5, or 0.4%, to settle at $1,303.10, while April futures, the most heavily populated gold contract, closed up $5.10, or 0.4%, at $1,309.30 an ounce.