Dow Plunging Again as 'Fear Index' Rises

China and the Fed contribute to sinking markets
By John Johnson,  Newser Staff
Posted Aug 21, 2015 11:08 AM CDT
Trader Glenn Kessler, left, and specialist Robert Nelson work on the floor of the New York Stock Exchange, Friday.   (AP Photo/Richard Drew)
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(Newser) – Yesterday's 300-plus plunge of the Dow was no fluke: It was down that much again today around mid-day as the markets headed toward their worst week of 2015, reports TheStreet. Fears about China's slowing economy were driving the declines, and concerns about a looming rate hike by the Fed weren't helping. In fact, MarketWatch notes that something known as the "fear index" from the Chicago Board Options Exchange was up 87% to nearly 24 for the week and on track for its highest weekly surge ever. The Volatility Index, of VIX, is essentially a "gauge of investors' nerves," explains City AM, though some think its importance is overstated. Its all-time record was 89.53, which it hit on Oct. 24, 2008.

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