The major stock market averages gapped down at the open, but quickly pared losses. The Dow is currently down 350 pts and the SPX is down 1%. Energy & financial sectors continue to slide, down 2% or more in early trading. In fact, the S&P energy sector has fallen nearly 11% since mid-July, right along with oil prices. It seems oil is somewhat over-supplied at the moment. The VIX Index, which spiked to 24.5 on Monday, has settled down toward 21. The index measures fear among traders, and hasn’t been this high since January. Commodities are mostly lower in today’s session, save copper and gold. In fact, gold is now up over 6% this month. Bonds are, in the words of Jim Cramer, trading like a recession is around the corner. The iShares 20+ Year Treasury Bond ETF (TLT) is up over 7% this month. Interest rates for Treasuries, municipals, and high-grade corporates are falling. The 10-year Treasury Note yield is down around 1.64%, the lowest since early October 2016.
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