U.S. stocks drop sharply as a new Covid variant found in South Africa triggers a global shift away from risk assets.
The Cboe Volatility Index, often referred to as Wall Street’s “fear gauge,” rose to 28, its highest level in two months. Oil prices also tumbled, withTravel-related stocks were hit hardest with Carnival Corp. and Royal Caribbean down 13.5 percent and 11.9 percent, respectively. United Airlines dropped more than 13 percent, while American Airlines dropped 12.5 percent. Boeing lost more than 7 percent and Marriott International fell nearly 10 percent.
Industrials linked to the global economy declined led by Caterpillar off by 4.9 percent. Dow Inc. shed 3.8 percent. Chevron dropped 3.6 percent as energy stocks reacted to the rollover in crude prices. Some of the stay-at-home plays that gained in the earlier months of the pandemic were higher again. Zoom Video added more than 7 percent and Peloton gained 4 percent.
Several investment professionals told CNBC on Friday that the sell-off could be a buying opportunity.
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