August 18. 2013
Market Review
Right in line with our recent call, U.S. stocks dropped significantly with all three major indexes logging their second weekly decline. For the week, the Dow Jones Industrial Average lost 344 points, or 2.2 percent, to close at 15,081.47, suffering its biggest weekly percentage drop and point loss of 2013. It was the blue-chip index's worst weekly percentage slide since May 2012, and its largest point decline since June 2012. The S&P 500 slumped nearly 36 points, or 2.1 percent, in five trading days to end at 1,655.83, suffering its biggest weekly point drop of the year, but not its biggest percentage decline. The tech-heavy Nasdaq slid 1.6 percent for the week to close at 3,602.78. All key S&P sectors finished in the red for the week, dragged by utilities and consumer staples. The Chicago Board Options Exchange Volatility Index, or VIX, jumped 7.2 percent to 14.37 during the week and is up 21 percent from a low on Aug. 5. The equity volatility gauge is still down 20 percent for the year.
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