U.S. Stock Market Faces Growing Fears Ahead of Deadline

U.S. stock market slammed on Monday over sequestration fears

The U.S. stock market and its major indexes opened the week on a dour note as fear spiked over Friday’s sequestration deadline and doubts regarding the political future of Italy.

Major stock market indexes finished deeply in the red with the Dow Jones Industrial Average (NYSEARCA:DIA) dropping 216 points, (1.55%) the S&P 500 (NYSEARCA:SPY) falling 1.83%, the Nasdaq 100 (NYSEARCA:QQQ) tumbling 1.33% and the Russell 2000 (NYSEARCA:IWM) slipping 2.22%.

In other major markets, gold (NYSEARCA:GLD) gained 0.19% to close at $1579.60 and oil (NYSEARCA:USO) gained 0.3% to close at $93.27.

VIX, the CBOE S&P 500 Volatility Index, (NYSEARCA:VXX) also known as the “fear index,” spiked 34.02% as fear reentered U.S. financial markets…