U.S. stocks extended declines Thursday, with the Dow briefly approaching an 700-point slide, as investors continue to test the resiliency of risk markets amid the biggest global sell-off since February.
The CBOE's key risk indicator, known by its trading symbol (VIX.X) , jumped to a February high of 28.8 points as the Dow Jones Industrial Average
I had $VIX pegged for $30--almost got there. Nice spot to start a rally'...now that the crazies are out of the market with their moronic panic selling. Why don't they sell now, i mean did they go to college to get stupid, stupid?— Jim Cramer (@jimcramer) October 11, 2018
U.S. Treasury bond yields also hit sessions lows as stock markets accelerated to the downside, as investors fled to safe-haven assets amid the global stock market rout. Benchmark 10-year notes were seen at 3.142% while 30-year bonds traded as low as 3.313% after an earlier auction of $15 billion in new paper that drew the biggest portion of foreign investors since the beginning of the year.
Energy stocks were the leading declines after a bigger-than-expected rise in domestic crude inventories, which is extending declines for global crude prices amid persistent concerns over the health of the world economy.
The Energy Information Administration said crude stocks rose by 6 million barrels in the week ending October 5, the third consecutive weekly advance and more than double the Street consensus of 2.6 million, to a weekly total of 409.5 million barrels. Stocks at the central distribution hub at Cushing, Oklahoma, which is used to price futures contracts, rose by 2.4 million barrels.
Brent crude contracts for December delivery, the global benchmark, were seen $2.78 lower from their Wednesday close in New York and changing hands at $80.27 per barrel while WTI contracts for November delivery, which are more tightly liked to U.S gas prices, closed $2.20 lower on the day at $70.97 per barrel.
The data, which followed a larger-than-expected buildup of 9.7 million barrels from the private American Petroleum Institute yesterday, is putting downward pressure on crude prices and sending U.S. energy stocks to the bottom of both the Dow Jones Industrial Average
Energy stocks on the Dow were marked 3% lower following the EIA data, with Chevron (CVX) falling 3.2% to $118.7 and Exxon Mobil (XOM) sliding 2.51% to 81.98 and pulling the stock into negative territory for the year. The S&P 500 Energy Index was marked 2.7% to the downside, extending its third quarter decline to around 4%.