* Financials sinks a day ahead of bank earnings
* Microsoft, Apple top drag on S&P, Nasdaq
* Vix jumps the most since Nov. 8 election
* Dollar trades near one-month low, gold surges
* Indexes down: Dow 0.89 pct, S&P 0.89 pct, Nasdaq 1.18 pct
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
Jan 12 The S&P 500 and the Dow were set for
their worst day since October as the lack of details on economic
policy in Donald Trump's speech took the wind out of a
record-setting post-election rally.
The losses were broad-based. All of the 11 major S&P 500
sectors were lower, with the technology, financial
and industrial sectors all down 1 percent or
In his first news conference since election, Trump on
Wednesday gave no details on tax cuts or infrastructure
spending. He instead lashed out at U.S. spy agencies and media
houses over what he called a 'phony' Russia dossier.
Trump also blasted pharmaceutical companies over high drug
prices, causing health stocks to snap a six-day winning streak
and a wobble on Wall Street.
"Some wind has been taken out of the reflation trade, at
least for the short term," said Jeff Zipper, managing director
at the Private Client Reserve, U.S. Bank in Florida.
"There is a high probability of more volatility if his
agenda does not go through or may take longer than he expects."
At 11:06 a.m. ET the Dow Jones Industrial Average was
down 177.03 points, or 0.89 percent, at 19,777.25 and the S&P
500 was down 20.34 points, or 0.89 percent, at 2,254.98.
The Nasdaq Composite was down 65.74 points, or 1.18
percent, at 5,497.91, set for its biggest one-day drop since
The CBOE Volatility Index or Wall Street's "fear
gauge", ticked up 11.6 percent, the most since the U.S.
The dollar was at a one-month low, while gold
rose to its highest since late November.
The financial index tumbled 1.5 percent, set for its worst
day since Sept. 29. The decline comes one day before a trio of
big banks report results, kicking off the fourth-quarter
Merck, one of the few health stocks that avoided
Wednesday's carnage, gained 2.1 percent after multiple broker
The drugmaker's fellow Dow component Disney Co was
off 1.7 percent at $107.62 after Pivotal cut its rating on the
stock to 'sell'.
Microsoft fell 1.8 percent and Apple
dropped 1.2, making them the biggest drags on the S&P and the
Declining issues outnumbered advancers on the NYSE by 2,080
to 728. On the Nasdaq, 2,157 issues fell and 527 advanced.
The S&P 500 index showed six new 52-week highs and three new
lows, while the Nasdaq recorded 28 new highs and 16 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by