Global concerns are sending the U.S markets on a down spiral today

Global concerns are sending the U.S markets on a down spiral today
As I am writing these words the Dow Jones is falling 478 points, the S&P 500 is down 1.60% and the NASDAQ is falling almost 1% and the so called fear index VIX is surging 38%. And it’s not enough to say that the stock market is on sale. The price/earnings ratio for the S&P500 is still at high levels now standing at 24.38. Today’s downturn in the markets started from the political mess that is rattling Italy, the third largest economy in the euro zone. Adding more concerns among market participants were bad news from J.P Morgan and Morgan Stanley, the first stating that the trading revenue will be probably flat from a year ago in the second quarter while the latter (Morgan Stanley) stating concerns about its wealth management division sending its stock down more than 6%, Today the banking sector is bleeding with J.P Morgan down more than 5%, Bank of America down more than 4.5% and Goldman Sachs down 4%.

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