Turmoil In Egypt Fuels Unease Ahead Of Monday Open
Author: Kristina Peterson</br></br>NEW YORK (Dow Jones)--U.S. stocks are likely to extend their Friday tumble when the market opens on Monday, while Treasurys and the U.S. Dollar are expected to rise, as continuing violence in Egypt over the weekend spurs investors to seek safe haven assets.</br></br>The events in Egypt have already prompted a rise in Treasury prices, a move that also benefited the dollar. Meanwhile, stock prices have fallen amid concern the violence in Egypt could spread to other countries in the Middle East or shut down the Suez Canal, potentially wreaking havoc on oil prices.</br></br>On Friday, the Dow Jones Industrial Average fell 166.13 points, or 1.4%, to 11823.70, its largest one-day drop in more than two months. The Standard & Poor's 500-stock index sank 23.20, or 1.8%, to 1276.34, its biggest one-day drop since Aug. 11, 2010. Market volatility skyrocketed on Friday, sending the CBOE Volatility Index up 24% amid investor anxiety. The VIX is at levels unseen since Dec. 2.</br></br>Investors nervous about instability gripping Egypt drove Middle Eastern stocks down sharply Sunday as markets reopened following a weekend of violent protests. The losses, led by a drop of more than 4% in regional business hub Dubai, reflect concerns the unrest that has roiled the Arab world's most populous country and nearby Tunisia could spread, jeopardizing an economic recovery across the region. Investor reaction will be further put to the test when Asian markets open this evening when Asian markets open and U.S. stock futures begin to trade.