US stock market closes with losses as volatility soars

By Ovunc Kutlu

ANKARA (AA) - Major indexes on the US stock market closed Tuesday with losses as volatility returned to create worries for investors.

The Dow was down 308 points to 32,423 with investment banking majors Morgan Stanley sliding 3.4% and Goldman Sachs falling 2.2%.

The S&P 500 slipped 29 to 3,911 and the Nasdaq fell 149 to 13,227 with AMC Entertainment plummeting 14%. Pharmaceuticals Novavax and Moderna shaved more than 6% each.

The VIX volatility index fell 9.9% to a low of 18.87 on Monday, marking its lowest level since Feb. 3, 2020. But the fear index soared 7.5% to the 20.30 level at the final bell.

The rise in volatility was seen despite calming testimony from Treasury Secretary Janet Yellen and the Federal Reserve Chair Jerome Powell to the House of Representatives Financial Services Committee.

While Yellen said she is seeing signs of economic recovery, Powell reiterated that the central bank would continue to provide support for the economy for as long as it takes.