The robust US payrolls report has shifted market expectations regarding Federal Reserve rate cuts, leading to rising Treasury yields and exerting pressure on equities. This economic backdrop has contributed to increased volatility, as reflected in the VIX's upward movement. The CBOE Volatility Index (VIX) surged by 8.14% to close at 19.54, indicating heightened market volatility. This surge suggests that investors are bracing for more significant daily movements in the S&P 500 over the next month. The increased volatility comes as investors digest the implications of the payrolls report and prepare for the upcoming earnings season, particularly from major banks, which is expected to further influence market sentiment.
The VS TR -1x Short VIX Futures ETF (SVIX) experienced a notable decline, dropping 6.31% to $23.30 at 4:40 PM on Friday, January 10.