The latest nonfarm payrolls report has injected a fresh wave of uncertainty into the markets, with investors increasingly concerned about rising bond yields and persistent inflation. This has led to heightened volatility expectations, as evidenced by the options market pricing in a significant potential move in the S&P 500. The VIX, often seen as a barometer of market fear, has risen sharply, reflecting traders' growing inclination to hedge against potential market swings amid strong job growth and high inflation. This uptick in the VIX underscores the market's apprehension about future economic conditions and the Federal Reserve's monetary policy trajectory.
The VS TR -1x Short VIX Futures ETF (SVIX) has reacted to these developments, declining 2.47% to $24.13 as of 10:40 AM on Wednesday, January 8.