VIX Drops, Traders Analyze Volatility Spike
What to know
- VIX drops from daily highs
- Traders analyze volatility spike
- Yesterday's surge a concern
What happened?
The VIX, a measure of market volatility, dropped from daily highs on Thursday as traders analyzed the conditions that led to a 30% volatility spike on Wednesday.
The spike was the largest one-day increase in the VIX since March 2020, when the COVID-19 pandemic began.
Traders are now trying to determine what caused the spike and whether it is a sign of further market turmoil.
What are the potential causes?
There are a number of potential causes for the volatility spike, including:
- The Federal Reserve's decision to raise interest rates by 75 basis points
- The ongoing war in Ukraine
- Concerns about a global recession
What are the implications?
The volatility spike is a reminder that the market is still vulnerable to shocks.
Traders should be aware of the risks and take steps to protect their portfolios.
The VIX is expected to remain elevated in the coming weeks as traders continue to assess the risks to the market.
Additional reporting by CNBC and Bloomberg.
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