News of a terrorist attack in Barcelona that left more than a dozen dead sent the market tumbling Thursday.
The Dow fell more than 200 points, about a 1% drop. All 30 of the stocks in the index were in the red.
The S&P 500 fell more than 1% and the Nasdaq was down nearly 2%.
Stocks were already having a bad day because of lingering concerns over President Trump’s rift with business leaders.
Uninspiring earnings and outlooks from Dow components Walmart and Cisco didn’t help matters. But the market hit it’s lowest spot of the day after the reports of the attack in Spain.
The VIX, an index that measures volatility, surged nearly 25%. CNNMoney’s Fear & Greed market sentiment index includes the VIX, and it fell into “extreme fear” among investors.
Airline stocks were among the bigger losers Thursday, with American, Alaska Air and Delta all among the 10 worst performers in the S&P 500. The big carriers tend to get hit when people worry about terrorism and the possible impact on global travel.
An exchange traded fund that owns leading companies in Spain also fell after the attack. The iShares MSCI Spain ETF was down more than 1.5%, led by drops in Banco Santander and Telefonica.
Gold prices rallied though. The yellow metal often spikes in times of geopolitical turmoil because it is viewed as a classic flight to safety investment.
Still, it’s also important to note that the stock market remains near record highs despite the recent selloff. The Dow is up more than 10% this year while the Nasdaq has gained 16%.