Stocks slip for Second straight day as Volatility reaches monthly high.
US stocks declined Wednesday, with the major indexes registering their second consecutive loss as North Korea tensions sparked a rush to safe havens.
The large-cap S&P 500 Index (NYSEARCA:SPY) pared losses to close at 2,473.02, where it was only slightly lower for the day. Four of 11 sectors finished in negative territory, with discretionary shares leading the decline following disappointing corporate results from Walt Disney Company.
The Dow Jones Industrial Average (NYSEARCA:DIA) closed down 0.2% at 22,048.70.
On Tuesday, the Dow snapped a ten-day winning streak that included nine consecutive all-time highs.
Meanwhile, the technology-driven Nasdaq Composite Index (NYSEARCA:QQQ) settled down 0.3% at 6,352.33.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) spiked to more than one-month highs on Wednesday. The VIX reached a session high of 12.63 before paring gains to settle up 1.4% at 11.11.
In commodities, oil prices recovered after government data showed a much bigger than expected drawdown in commercial crude inventories. The US Energy Information Administration (EIA) said weekly stockpiles fell by 6.45 million barrels in the period ending August 4.
West Texas Intermediate (WTI) futures climbed 39 cents, or 0.8%, to $49.56 a barrel on the New York Mercantile Exchange. Brent crude, the international futures benchmark, added 54 cents, or 1%, to $52.68 a barrel.
The Final Word: Tensions on the Korean peninsula were largely responsible for Wall Street’s soft performance on Wednesday. Risk aversion drove huge demand for precious metals, with gold prices adding $20.