US stocks, cryptos plummet with rise in volatility

By Ovunc Kutlu

ANKARA (AA) - Major US stock indexes opened lower Monday, while Bitcoin and other cryptocurrencies plummeted, due to rising volatility in the markets.

The Dow Jones was down 141 points, or 0.4%, to 31,352 at 9.50 a.m. EDT (1450GMT), while the S&P 500 fell 22 points, or 0.5%, to 3,884 with Tesla losing 2.4%.

The Nasdaq decreased 143 points, or 1%, to 13,730 with Uber, Zoom Video losing more than 2% each.

The VIX volatility index, which increased 12.6% for three consecutive days last week, was up again on Monday. The fear index was at 23.54 with a 0.7% gain.

After soaring 14 basis points last week to 1.34%, its highest level since February 2020, the 10-year US Treasury yield gained another 3 basis points on Monday to 1.37%.

Bitcoin was down 17% at one point on Monday, posting its largest daily decline since Jan. 27, leading to other cryptocurrencies having also major losses for the day. After hitting a new all-time highest level at $58,321, Bitcoin fell to as low as $48,383 before climbing back above the $50,000 mark.

Investors will be closely watching the Federal Reserve Chairman Jerome Powell's semi-annual testimony before the Senate Banking Committee on Tuesday. The head of central bank's comments on overall American economy, inflation and interest rates could determine the direction of the markets.