Stocks experienced a turbulent start to the week as major indices took a hit in early trading on Monday. The Dow Jones Industrial Average initially dropped 893 points, representing a 2.4% decline, before showing signs of recovery later in the morning. The broader market also saw losses, with the S&P 500 falling by 2.6% and the tech-heavy Nasdaq Composite slumping 3.3%.
Investor sentiment appeared to be rattled, as indicated by CNN's Fear & Greed Index, which reached an 'extreme fear' reading amid the market downturn. This index, which considers various factors to gauge market sentiment, reflected heightened concerns among market participants.
Additionally, the VIX, commonly referred to as Wall Street's fear gauge, surged to a level of 43 following its peak above 60 earlier in the session. The VIX is a measure of expected market volatility derived from S&P 500 options, and its sharp increase underscored the heightened uncertainty and anxiety prevailing in the market.
While the initial sell-off triggered by concerns over inflation and rising interest rates led to significant losses, the partial recovery later in the morning offered some respite to investors. Market participants continue to monitor developments closely, with a focus on economic indicators and central bank policies that could influence future market movements.
