The S&P 500 today fell more than 2%, driven lower by bad consumer spending and consumer sentiment news and fear over a CIT Group bankruptcy.
The Dow Jones industrial average closed down 249.85, or 2.51%, at 9,712.73; for the week, the Dow closed down 2.6%. The S&P 500 down 29.93, or 2.81%, closing at 1,036.18; and the Nasdaq composite was down 52.44, or 2.5%, to close at 2,045.11. All numbers are preliminary.
In reports issued today, the Bureau of Economic Analysis reported that U.S. month-over-month consumer spending fell -0.5% in September, while the Reuters/University of Michigan consumer confidence index fell to 70.6 in October from 73.5 in September.
Investor Carl Icahn today entered into an agreement providing an additional $1 billion of financing for CIT that “may be drawn as debtor-in-possession financing in the event of bankruptcy.”
CIT stock fell 24.2% to 72 cents in trading.
The CBOE Volatility Index today increased 23.95%, according to preliminary data, the highest single-day increase in more than six months.