Key Points:
- The Dow Jones fell 1.66% to hit a new one-month low.
- IBM shares crashed over 13%, leading the market decline.
- Visa stock dropped to a 52-week low while American Express tumbled.
- Gold prices surged past $5,200 as market volatility spiked 10%.
U.S. stocks started the week on a sour note, with major indexes sliding significantly on Monday. The Dow Jones Industrial Average dropped 1.66%, marking a new one-month low. The S&P 500 and the tech-heavy NASDAQ didn’t fare much better, both losing over 1% by the closing bell. Investors seemed nervous, dumping shares in financial, industrial, and consumer service sectors.
International Business Machines (IBM) suffered the worst blow of the day among the blue-chip companies. Its stock crashed more than 13%, wiping out significant value. The pain spread to major credit card companies as well. American Express tumbled over 7%, while Visa fell 4.5%. Visa’s decline pushed its stock price down to $306.52, its lowest level in a full year.
Despite the sea of red, investors found safety in companies that sell everyday essentials. Consumer staples like Procter & Gamble and Walmart managed to post gains as traders looked for stability. McDonald’s stood out as a clear winner, rising 1.6% to reach an all-time high price of $334.56. When the market gets shaky, Wall Street often flocks to reliable food and household brands.
The technology sector saw mixed results. PayPal jumped nearly 6%, providing a rare bright spot for the S&P 500. However, cybersecurity firm CrowdStrike dropped almost 10%. The NASDAQ witnessed extreme volatility in smaller companies. Biotech firm Arcellx skyrocketed 77% to a record high, while Gossamer Bio lost 80% of its value in a single session, collapsing to an all-time low.
Fear is clearly returning to the market. The CBOE Volatility Index, often called the fear gauge, spiked more than 10%. This anxiety pushed traders toward gold, a traditional safe-haven asset. Gold futures surged over 3%, climbing past $5,247 an ounce. Meanwhile, crude oil prices remained mostly flat as traders watched global events unfold.
