U.S. stocks fell 1 percent on Monday as the effects of the earthquake and tsunami in Japan was caution on Wall Street, that’s probably more volatility in the near future to see.
The benchmark Standard & Poor’s 500 fell to its lowest in six weeks, following sharp losses abroad. European shares hit their lowest level in three months.
“When in doubt, sell,” said Charles Lieberman, chief investment officer of Advisors Capital Management, LLC in Hasbrouck Heights, New Jersey.
Because investors are uncertain, there is nervousness and the desire for security, he explained. “So some are only on sale on that basis,” he said.
The Chicago Board Options Exchange volatility index. VIX, or VIX, jumped 12.6 percent, another sign investors are worried by uncertainty.
Fractional shares hardest hit were those in the nuclear industry after explosions and damage to Japanese nuclear power plants created doubts about the prospects of the industry.
Furthermore, the shares of luxury goods companies worldwide hit. Japan accounts for 11 percent of global luxury sales.
Stocks have rallied strongly since the beginning of September, with the S & P 500 is still up 23 percent since then, but the market has stagnated in the last two weeks.
A second explosion rocked a hydrogen power plant hit in Japan, sending authorities scrambling to prevent a meltdown.
source:reuters
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