US stocks sank for a third day on Wednesday as worries about Japan's nuclear crisis escalated, and analysts saw more volatility ahead for the market. The S&P 500 fell more than 1 percent and was within a few points of turning negative for the year after the UN nuclear watchdog chief said the situation at a nuclear reactor in Japan damaged after a recent earthquake and tsunami was "very serious."
The VIX market volatility index, Wall Street's fear gauge, jumped 15 percent, and the IShares MSCI Japan Index Fund, which owns Japanese stocks, slid 4.1 percent to $9.62. US power company Exelon Corp fell 3.2 percent to $40. The Japan nuclear crisis has created doubts about the prospects for the nuclear power industry.
The Dow Jones industrial average tumbled 178.39 points, or 1.50 percent, at 11,677.03. The Standard & Poor's 500 Index slumped 19.17 points, or 1.50 percent, at 1,262.70. The Nasdaq Composite Index was down 39.28 points, or 1.47 percent, at 2,628.05.