U.S. Stocks Post Largest One-day Drop In Eight Months

The S&P 500 and Dow industrials on Wednesday posted their largest one-day decline since September as fears over the fallout from turmoil in Washington prompted investors to unload risky assets such as equities. Investors grew increasingly concerned that political turmoil in Washington would delay or prevent President Donald Trump's tax reforms and other fiscal stimulus measures. The selloff on Wall Street was broad-based, with investors fleeing to government bonds and defensive equities such as utilities and real estate. The Dow Jones Industrial Average shed 372.82 points, or 1.8%, to 20,606.93. The S&P 500 slumped 43.64 points, or 1.8%, to 2,357.03. The Nasdaq Composite Index lost 158.63 points, or 2.6%, to 6,011.24, its largest one-day decline since last June. The CBOE Volatility Index surged 40%, biggest one-day increase since last September. Financials were among the worst hit, with the sector down 3%, while nine of the 11 main sectors were down more than 1%. Goldman Sachs Group Inc. lost 5.5% while Bank of America sank 6%.