Stocks are plummeting on Wall Street as investors contend with increasing interest rates.
As of 3 p.m. CST, the Dow Jones index had fallen over 800 points, or more than 3 percent of its total value. Meanwhile, the Nasdaq has dropped approximately 300 points, or 4 percent. S&P 500 also fell 2.80 percent today, or around 80 points.
The Russell 2000 Index had the smallest losses, at -42 points (at 3 p.m. CST). However, that represents a 2.5 percent slide.
Across the board, companies have faced significant losses today, but tech companies have been hit particularly hard. Investors are attributing the losses to high bond yields. The higher rates on bonds could result in slow-downs in the technology industry and other sectors.
After the 2008 recession, the U.S. economy stabilized and has steadily improved. As the economy’s prospects have risen, so have interest rates. The increased interest rates, though, have caused concerns for investors.
One way to gauge investors’ concerns is to look at the Cboe Volatility Index. The Cboe Volatility Index (VIX), also known as Wall Street’s “Fear Gauge,” tends to increase as the stock market slides. It currently sits at 22.43 points (as of 3 p.m. CST). In the past five days, the VIX has risen from roughly 12.61 points. The VIX has risen by almost 41 percent in recent days.
Since Oct. 5, the Dow Jones has slid from roughly 26,700 points to 25,598 points. In the same time span, Nasdaq has fallen from roughly 7,700 to 7,422 points, and S&P 500 has fallen from 2,800 to 2,785 points.