Volatility gripped financial markets with the coronavirus outbreak in the US days before a crucial presidential election
The Cboe volatility index, or VIX, hit its highest level since mid-June as record virus cases, tougher lockdowns in Europe and a slowdown in the US market recovery. Labor renewed fears of a deeper recession Tensions had already been high with less than a week before the US vote
« Unstable markets have been there for quite some time, and I think we’ll continue to see them until we see a vaccine widely distributed and we can get past Covid, » said Chris Gaffney, president of the global markets at TIAA Bank « Whenever we see a resurgence, you’re going to see additional restrictions, which impact how people spend their money »
The VIX climbed above 40 on Wednesday amid a market rout that sent the S&P 500 index down around 3% CBOE NDX volatility index – a measure of implied volatility High Tech Nasdaq 100 Index On Track To Highest Close Since April
As bets on post-election calm escalated earlier this week, the potential for re-establishment of virus lockdowns in the US could keep volatility high after next week’s vote
« Just because we arrive on election day doesn’t mean it takes away the volatility, » Gaffney said « There is a lot of uncertainty in the markets even after election day »
Stock market, VIX, S&P 500 index, share
Global news – EN – VIX hits highest level since June with growing economic threat