Stocks end near lows, Dow skids over 150 as Syria fears escalate; Vix spikes 12%

(CNBC) Stocks finished sharply lower for a second session Tuesday, with the Dow falling to a two-month low, amid escalating worries over potential U.S. military action in Syria.

Defense Secretary Chuck Hagel told the BBC the U.S. military is "ready to go" if President Barack Obama orders action over a chemical weapons attack in Syria.

Meanwhile, NBC News reported the U.S. could launch a missile strike against Syria "as early as Thursday."

The Dow Jones Industrial Average fell 170.33 points, or 1.14 percent, to finish at 14,776.13, dragged by Bank of America and Microsoft. The blue-chip index posted its 13th decline this month, the most number of drops in a month since July 2012.

The S&P 500 dropped 26.30 points, or 1.59 percent, to end at 1,630.48. And the Nasdaq slumped 79.05 points, or 2.16 percent, to close at 3,578.52. Both indexes posted their worst day in two months.

The Dow and S&P 500 are on track for their biggest monthly declines since May 2012.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, spiked near 17.

All key S&P sectors closed in the red, dragged by techs and financials.

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