The "fear gauge" just turned in its best month since April
Stocks closed out August with another selloff, with all three major indexes logging a fourth-straight daily loss and finishing August in the red. The Cboe Volatility Index (VIX), meanwhile, had its best month since April, despite settling lower today. Cleveland Fed President Loretta Mester sent investors off into September -- historically one of the worst months of the year for stocks -- by noting benchmark interest rates could rise above 4% in 2023, as the central bank remains committed to fighting high inflation.
Continue reading for more on today's market, including:
- CrowdStrike stock tumbled despite bull notes.
- A beat-and-raise couldn't help this retail stock.
- Plus, Snap announces layoffs; options bulls beware of MNST; fintech name upgraded.
The Dow Jones Average (DJI - 31,510.43) dropped 280.4 points, or 0.9% for the day, and 4.1% for the month. Amgen (AMGN) led the gainers, adding 0.5%. Salesforce (CRM) paced the laggards with a 2.2% drop.
The S&P 500 Index (SPX - 3,955.00) shed 31.2 points, or 0.8% for the day, and 4.2% for the month. Meanwhile, the Nasdaq Composite (IXIC -11,816.20) lost 66.9 points, or 0.6% for the session, and 4.6% for the month.
Lastly, the Cboe Volatility Index (VIX - 25.87) lost 0.3 point, or 1.3% for the session, but gained 21.2% for the month.
5 Things to Know Today
- The Food and Drug Administration (FDA) authorized booster shots targeting the Covid-19 omicron BA.5 variant, which are set to roll out after Labor Day. (CNBC)
- Bed Bath & Beyond (BBBY) said it will cut jobs, close 150 stores, and revamp its merchandising strategy after securing $500 million in new financing. (Reuters)
- Snap stock was volatile after the departure of two key executives.
- Why options bulls should steer clear of Monster Beverage stock.
- Fintech name enjoying tailwinds on the heels of analyst praise.
Oil, Gold Prices Extend Monthly Losing Streaks
Oil prices moved lower on Wednesday to mark their third-straight month in the red -- their longest losing streak in two years. Slowing global economic growth, lockdowns in China, returning supplies from Libya, as well a the potential for Iranian crude to enter the market contributed to these losses. October-dated crude shed $2.09, or 2.3%, to close at $89.55 per barrel on the day, and fell 9.2% in August.
Gold prices edged lower for a fourth consecutive day and turned in their fifth-straight negative month, the latter of which marks worst losing streak of its kind in roughly four years. Rising Treasury yields and strength in the U.S. Dollar continued to weigh on the yellow metal. December-dated gold dropped $10.10, or 0.6% to close at $1,726.20 an ounce. For the month, prices shed 3.1%.