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 and expectations of significant daily movements in the S&P 500 over the next month. As investors digest these developments, the upcoming earnings season, particularly from major banks, is expected to further influence market sentiment.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) saw a notable increase, climbing 6.73% to $49.46 at 4:40 PM on Friday, January 10.