VIX index (INDEXCBOE: VIX) had a strong rebound on Thursday as the volatility in crypto markets increased. The US equities are currently in the midst of a major pullback after a strong upward rally. Tech stocks are experiencing a deep correction after generating massive returns throughout this year.
On Thursday, the markets opened higher, but due to a constant sell-off, the benchmark indices closed in red. The S&P 500 index fell by fell by 59 points and showed a 1.35% decline. Similarly, the NASDAQ 100 index also experienced a 2.19% correction and closed at 14,816 points.
FED Chair Powell To Address Jackson Hole Today
The annual Jackson Hole Economic Symposium is currently in proceedings. The FED chair, Jerome Powell is set to address the gathering of leading economists and bankers on Friday. The hawkish comments from the central bank chief in his last year’s address triggered a 2.3% correction in the markets.
Thursday’s sell-off can be attributed to the market expectations from the upcoming Powell speech. A 7.76% surge in VIX in its last trading session adds to the bearish confluences. On Friday, the VIX index is trading sideways without any significant gain or loss till press time.
VIX Index Soars As Volatility Increases
Vix is a good measure of the volatility in the markets. The index spikes whenever there is a major move in the markets. After marking its local bottom of 12.74 points in July 2023, the index is now up more than 35% from the lows.
Vix index appears to be heading for another retest of the 18.60 points level, which is a major pivot on its chart. If the index gains strength above this level, Wall Street may experience a much deeper correction in its equity positions which has generated substantial gains this year.
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