By Ibinu Vadakkan Dec 19, 2024
After the Fed meeting, markets went haywire, and the volatility index spiked. Let’s break it down, step by step.
When uncertainty hits, the VIX climbs—and last week, it shot up like a rocket.
Investors panicked, driving the Dow Jones and S&P 500 into a sea of red.
Rising Treasury yields caused bond prices to dip, adding to the market turmoil.
Traders use the VIX as a gauge for market stress, and it screamed “uncertainty” last week.
High-growth sectors like tech are especially vulnerable when rates rise, and they felt the heat.
Uncertainty about future rate hikes left everyone guessing—and selling.
Some investors see high VIX levels as a sign it’s time to buy.
Major indices struggle to stabilize as traders process mixed economic signals.