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 responded to these concerns, climbing as traders seek protection against potential market swings. The complex interplay of strong job growth, high inflation, and the possibility of delayed interest rate cuts is contributing to this cautious sentiment.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) has reacted to these developments, rising 3.08% to $47.84 as of 10:40 AM on Wednesday, January 8.