The recent surge in the CBOE Volatility Index (VIX) reflects heightened market volatility, driven by a robust US payrolls report that has altered expectations for Federal Reserve rate cuts. This shift has led to rising Treasury yields and exerted pressure on equities, contributing to the VIX's upward movement. The S&P 500 Index's decline of 1.54% underscores the market's reaction to these economic developments. As investors brace for the upcoming earnings season, particularly from major banks, the increased volatility is expected to persist, influencing market sentiment and trading strategies.
The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) experienced a notable increase, rising 10.41% to $23.22 as of 4:40 PM on Friday, January 10.