New York stock market tumbles on oil price shock as Wall Street ‘fear gauge’ tops 30

[The Financial News]

The New York stock market slumped sharply on the 27th (local time).
Following the previous day’s drop in the Nasdaq Composite Index, the Dow Jones Industrial Average also entered correction territory. The Standard & Poor's 500 Index (S&P 500) is now down about 9% from its peak, suggesting it could soon fall into a correction as well.
As international crude oil prices broke above 110 dollars per barrel, major big tech stocks recorded steep losses.

Among the three major U.S. stock indexes, the Dow followed the Nasdaq into a correction on this day. A decline of more than 10% from a previous high is defined as a correction, while a drop of more than 20% marks a bear market.
The Dow Jones Industrial Average sank 793.47 points, or 1.73%, to close at 45,166.64, while the S&P 500 slid 108.31 points, or 1.67%, to 6,368.85.
The Nasdaq plunged 459.72 points, or 2.15%, to finish at 20,948.36.
On a weekly basis, only the Dow, which slipped 0.24%, avoided a steep loss. The S&P 500 tumbled 2.12%, and the Nasdaq dropped 3.23%.
Investors were in a state of panic.
The Cboe Volatility Index (VIX), often called Wall Street’s “fear gauge,” surged 3.61 points, or 13.16%, to 31.05.
This is the first time the VIX has climbed above 30 since last April, when Donald Trump announced sweeping reciprocal tariffs and sent markets into a panic.

Big tech shares fell sharply across the board.
Market bellwether Nvidia dropped 3.72 dollars, or 2.17%, to 167.52 dollars, while Alphabet lost 6.58 dollars, or 2.34%, to close at 274.34 dollars.
Microsoft fell 9.20 dollars, or 2.51%, to 356.77 dollars, and Apple ended the session at 248.80 dollars, down 4.09 dollars, or 1.62%.
Amazon plunged 8.20 dollars, or 3.95%, to 199.34 dollars, and Tesla slid 10.28 dollars, or 2.76%, to 361.83 dollars.
Palantir Technologies also tumbled 4.50 dollars, or 3.05%, to finish at 143.06 dollars.
Meta Platforms, which had already crashed 7% the previous day on a loss in a social media lawsuit, wiping out 119 billion dollars in market value, sank another 21.82 dollars, or 3.99%, to 525.72 dollars.
In contrast, Micron Technology, which had plunged earlier on the shock from Google’s “TurboQuant,” managed to rise 1.76 dollars, or 0.50%, to 357.22 dollars despite the broader market weakness.

dympna@fnnews.com Song Kyung-jae Reporter