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 in response, reflecting traders' growing demand for hedges against potential market swings. This uptick in the VIX underscores the broader market's anxiety over future economic conditions and the Federal Reserve's monetary policy trajectory.
The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) has responded to these volatility concerns, climbing 3.81% to $22.05 as of 10:40 AM on Wednesday, January 8.