As fear rises on Wall Street, strategists warn the worst is yet to come
Stocks plummeted toward bear country, led by the Nasdaq Composite Index, and Wall Street's preferred fear gauge rocketed higher on Thursday.
And strategists say selling will get worse before it gets better.
After the Federal Reserve spooked markets Wednesday, risk assets and stocks have been reeling, with some of the sharpest losses on Thursday in growth sectors like biotech and technology. That weighed hard on the Nasdaq, which dropped 2 percent and is now officially in a bear market, down more than 20 percent from its highs. The Dow fell more than 600 points Thursday, through the psychological 23,000 level, and the S&P 500 was off 1.8 percent, or 16 percent from its highs.
The CBOE Volatility Index jumped above 30, its highest since the major market sell-off in February of this year.
"The market's in no man's land," said Peter Boockvar, chief investment strategist at Bleakley Advisory Group. Stocks have broken through the lows of the year, and technicians are scurrying to find the next support levels. On the S&P 500, he said 2,400 is a potential psychological area of support.
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