Stocks moved lower Tuesday, edging away further from their strongest levels on record on widening concerns about rising COVID-19 cases worldwide.
The S&P 500 and the Dow Jones Industrial Average were in the red for a second straight session after notching record closing highs at the end of last week.
But on the rise was Wall Street’s so-called ‘fear gauge, with the VIX index climbing by the most in three weeks, indicating investors expect increased volatility over the next 30 days. A recent survey by Allianz showed many Americans want to stay on the sidelines of the stock market this year as they are worried that volatility will accelerate and hurt their investments.
Here’s where US indexes stood at 9:30 a.m. on Tuesday:
The S&P 500’s consumer discretionary sector was losing the most ground, with airline stocks down after the US State Department on Monday said it planned to issue a “Level 4: Do Not Travel” advisory for nearly 80% of countries worldwide as coronavirus continues to spread. Shares of United Airlines were also lower after the carrier indicated quarterly losses would continue until air travel recovers to 65% of 2019 levels.
Elsewhere, Apple will be in focus with the tech heavyweight set to host its “Spring Loaded” virtual event during which it is expected to introduce two iPad Pro models. The event is scheduled for 1 p.m. Eastern, 10 a.m. Pacific Time.
Around the markets, GameStop stake held by Alaska soared more than 700% last quarter and its Tesla bet has grown to $85 million in 18 months