over a potential strike on Syria sent stocks tumbling on Tuesday. The decline comes
on news of the use of chemical weapons against civilians by Syrian President
Bashar al-Assad’s forces.
a meeting Istanbul between the Syrian National Coalition and other groups
opposed to al-Assad’s government, sources said that “action to deter further
use of chemical weapons by the Assad regime could come as early as in the next
few days.” U.S. Defense Secretary Chuck Hagel said in an interview with the BBC
that U.S. forces are ready to respond if given an order by President Obama.
stock market retreated on this news, along with continued uncertainty over when
the Fed will begin to taper the bond-buying program. Market concerns were
reflected in a jump of more than 15 percent on the CBOE volatility index in the
last two days.
prices rose to a 15-week peak and prices of U.S. Treasuries rose as the tensions
sparked a flight to safer investments. Oil prices also rose nearly 3 percent on
the possibility that a strike in Syria could trigger wider unrest in the Middle
situation has been developing for some time with the U.N. Security Council deadlocked
on Syria since 2011. Russia and China have vetoed three resolutions condemning Assad and
calling for punitive steps against his government. On Monday, U.S. Secretary of
State John Kerry on Monday called for Syria to be held accountable for what he
called a "moral obscenity" and laid the groundwork for possible military
U.S. Treasury Secretary
Jack Lew said it was essential for Congress to raise the government's borrowing
limit by mid-October or the country will face an unprecedented default, and
warned the administration would not allow for it to be used as political